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  • Sunday, 01 August 2021
Core inflation

Core inflation



  • An inflation measure which excludes transitory or temporary price volatility such as food items, energy products etc.
  • It reflects the inflation trend in an economy.
  • A dynamic consumption basket is considered the basis to obtain core inflation. Some goods and commodities have extremely volatile price movements.
  • Core inflation is calculated using the Consumer Price Index (CPI) by excluding such commodities.
  • Core inflation is less volatile than headline inflation.

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