Core inflation English (en) français (fr)

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Core inflation, unlike headline inflation that makes the newspapers' headlines and comprises all goods of the household's basket, does not contain energy and unprocessed food[1].

Underlying or core inflation is a concept with no widely accepted definition. In practice, it has been put forward that a measure of underlying inflation should separate the transitory from the more persistent components of inflation, since the latter are less noisy indicators of current and future inflation developments.[2]

For instance, Investopedia defines core inflation as HICP excluding energy and food. [3]

In its Eurosystem staff macroeconomic projections for the euro area, page 9, the ECB does not use the concept core inflation but

HICP excluding energy
HICP excluding energy and food 
HICP excluding energy, food and changes in indirect taxes

The INE (es) also defines core inflation as overall index excluding unprocessed food and energy products.[4]

See also



  1. DG ECFIN, Key indicators for the euro area, published on 6 November 2015.
  2. ECB, Research & Publications, Economic Bulletin, Focus Are sub-indices of the HICP measures of underlying inflation?, Monthly Bulletin 12/2013, p. 63, last retrieved on 17 November 2015.
  3., Core inflation
  4. INE, Consumer Price Index, Press release Consumer Price Index (CPI). Base 2011 November 2015, p.2, published on 15 December 2015.
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