Underlying Inflation
(redirected from Underlying Rates of Inflation)Underlying Inflation
Inflation caused by a reduction in the value of money rather than price changes in volatile products. For example, rising gasoline prices may reduce the spending power of one's income, but this may be due to factors external to money such as excessive speculation. Underlying inflation measures changes to the supply and demand for money itself. See also: Core Inflation.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved