Daily Point 2047 - Core Inflation or Underlying Inflation

 

The Banking Tutor

Daily Point 2047

Core Inflation or Underlying Inflation 

Core inflation which is also called underlying inflation, excludes seasonal inflationary factors such as food and energy costs. The transitory or seasonal inflation is removed from headline inflation to get core inflation.

Core and non-core are the two parts of total inflation or what we call the headline inflation.

 

So, Headline inflation = Core inflation + Non-core inflation

Or

Core inflation = headline inflation – non-core or seasonal inflation.

 

Sekhar Pariti

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