Core inflation
A measure designed to track underlying price pressure by excluding selected volatile or administered items.
Plain languagePractical exampleConnected reading
01
What is it?
A measure designed to track underlying price pressure by excluding selected volatile or administered items.
02
Why does it matter?
Central banks use it to assess persistent price pressure and the policy outlook.
03
How should it be read?
Check which components are excluded and compare services with goods.
04
Common mistake
Assuming every country defines core inflation identically.
A simple example
If energy falls while services inflation stays high, core inflation may prove stickier than headline inflation.