Vipul: Created page with "==Definition== '''Core inflation''' is a measure of defining ingredient::inflation that excludes items that undergo volatile seasonal price movements, such as food and energ..."

2011-07-25T16:17:48Z

Created page with "==Definition== '''Core inflation''' is a measure of defining ingredient::inflation that excludes items that undergo volatile seasonal price movements, such as food and energ..."

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==Definition==

'''Core inflation''' is a measure of [[defining ingredient::inflation]] that excludes items that undergo volatile seasonal price movements, such as food and energy sources. It is computed by measuring the fractional change in a version of a [[defining ingredient::consumer price index]] that excludes food and energy sources.

Over a short time frame, core inflation may differ significantly from the overall inflation rate (computed using the full CPI). However, over a longer time frame, the core inflation rate and overall inflation rate may be very close, (''questionable'': because long term changes in the prices of food and energy sources would also be reflected in the prices of other goods through their indirect effects on production processes.)

Core inflation - Revision history

Vipul: Created page with "==Definition== '''Core inflation''' is a measure of defining ingredient::inflation that excludes items that undergo volatile seasonal price movements, such as food and energ..."