core-inflation

To see if reality matched this theory, I plugged the numbers on overall inflation and core inflation since 1980 into a spreadsheet.

Although the spending report showed core inflation moving higher, analysts did not think this would tie the U. S. central bank's hands.

However, core inflation had edged up in recent months, and considerable uncertainty surrounded the inflation outlook.

Indeed, there are signs that the forces that have pushed headline above core inflation are beginning to reverse course.

This was done to prevent core inflation, which had already fallen below 1%, from declining any further.

Employment stumbled in May and manufacturing braked sharply, while a pick-up in core inflation gathered speed.

Despite the underlying inflation risks, a statistical quirk may push core inflation down in the coming months.

And yet so-called core inflation, which excludes food and energy, has remained mostly tame.

As long as energy and food costs level off, core inflation ought to slow over the next year, Stern said.

The core inflation rate rose just 0. 9% in June from a year earlier-among the lowest levels seen since 1966.

But wages (rising at nearly 30% a year in Russia) and core-inflation rates are also accelerating.

Then, they publish a "core" inflation figure and congratulate themselves for a steady, apparently stable price structure.

Asia's predicament is a sharp contrast to the U. S. and Europe, where core inflation has yet to reveal itself in earnest.

second, the correlation between the last three months of core inflation and the following three months of overall inflation.

The Fed concentrates on core inflation, which reflects underlying pressures in the economy, as the best guide to how prices will move.

He revealed that the Fed bases this contention on an index of "core inflation, " which excludes food and energy costs.

In the U. S. , the Federal Reserve has said it still believes core inflation is contained, despite rising energy prices.

But rising 'core' inflation could also challenge the relatively mild strategy pursued so far.

The integration of China and India into the global economy has led to lower prices for manufactured goods, trimming core inflation rates.

If energy is excluded, as it is in other countries' measures of core inflation, prices are actually falling.

But this is only part of the story: core inflation rates are also creeping up, and lax monetary policies are to blame.

Once this process dies down, as long as core inflation remains anchored, headline inflation must converge to it.

Readings on core inflation have improved modestly in recent months, and inflation pressures seem likely to moderate over time.

One indication of the excess supply is the decline in core inflation to close to 1 per cent in the US and the eurozone: deflation beckons.

Higher headline inflation is not expected to persist, however, and the upward revision to core inflation was smaller.

Core inflation, stripped of food costs, rose much more slowly, giving Beijing some room to stimulate the slowing economy if necessary.

Despite this, indicators of capacity usage and core inflation suggest underlying inflation remains constrained.

He expressed hope of bringing core inflation below five percent in the next year.

Unlike core inflation, the headline measure includes fuel costs, which rose sharply, as well as food prices.

Could central banks lose control of core inflation, as one consequence of globalisation is unfettered demand for limited resources?

Worse, core inflation itself seems already to be drifting upwards.

He pointed to the corporate profit cycle and lower non-oil import prices as factors that explain lower core inflation in recent months.

Core inflation The basic level of inflation over a period of time (e. G. A decade) as opposed to temporary fluctuations in the rate.

They tend to be more sceptical about the notion that moderate core inflation measures give a good indication of future inflation trends.

COOKING THE BOOKS The widely used "core inflation" measure does not include food or energy.

Core inflation, says Louis Kuijs of the World Bank in Beijing, 'is basically determined by wage inflation in manufacturing. '

With globalisation linking us all by the hip, how can core inflation then become a problem in Asia?

But concern was muted as most of the CPI increase resulted from rising food prices, with core inflation remaining low.

It is not surprising, therefore, that the gap between headline and core inflation has been particularly large there.

Chris Varvares of Macroeconomic Advisers, a forecasting consultancy, thinks that core inflation will fall to close to zero in 2011.

Core inflation, which takes out food and energy so people don't consume food or drive cars, and food and energy prices are soaring.

But core inflation never suggested deflation was at hand.

Overall inflation was simply returning to the larger trend that core inflation showed all along.

The central bank's measures of core inflation showed annual price increases also slowed last quarter.

The lure of core inflation as a barometer is that headline inflation rates tend to be volatile.

s also bear down on costs, and so money remains cheap while (core)inflation is safely confined.

Friday's consumer-price report came in weaker than expected, and showed core inflation rates running at 44-year lows.

Core inflation, which strips out food and energy, remains tame in both Britain and America.

The core CPI showed barely any inflation in May, and the annual rate of core inflation increased at a 0. 9% annual rate.

But Indialacks a robust measure of core inflation, or comprehensive measures of employment and wage pressures.

Excluding food and energy prices, which are particularly volatile, so-called core inflation was flat, at 0 percent.

Core inflation (excluding food and energy) was just 0. 6% in the year to October, the lowest since records began in 1957.

Core inflation, as measured by the personal consumption expenditure price index excluding food and energy, rose 0. 1pc in July.

Why care about headline inflation versus core inflation?

The paper considered several measures of core inflation.

Non-food inflation is the main measure of core inflation in China, and is where wage gains would normally be expected to show up.

But even core inflation rates are trending lower in many countries.

Inflation has picked up somewhat, but core inflation remains low.

Germany's most recent rate of annual core inflation was just 0. 3 per cent.

Core inflation has been above the Federal Reserve's comfort zone for some years now.

From the late 1960s to the late 1970s the Fed lost control of core inflation, which increased nearly in lockstep with overall inflation.

Both total CPI and core inflation should trough in the second half of this year and return to 2 per cent in the second quarter of 2011.

Energy and food price changes are excluded from "core" inflation because of their period-to-period volatility.

And indeed, at no point does the Fed project that core inflation will rise above 2%.

When housing costs are excluded, core inflation has actually risen, to 2. 6% in February (see chart).

The core inflation index, which excludes food and energy costs, was 1. 5%, the highest since the fourth quarter of 2009.

The jump in core inflation may seem puzzling.

Core inflation in the US is dropping fast.

Core inflation (excluding food, but including oil) is running at only 1. 4%.

Core inflation near zero, or even negative, is a live possibility for 2010 or 2011.

A comparable gap in 1981-83 produced a drop in core inflation of six percentage points.

Indonesia said consumer prices there rose 3. 9% from the year-earlier period, while core inflation rose 3. 7%.

Core inflation has been treading water near a 1. 5% year-on-year growth rate since April.

There are also concerns about core inflation readings, which strip out volatile elements such as food and energy prices.

Yet China's core inflation, after recovering from declines in 2009, has been pretty steady around 1. 5% this year.

In China core inflation (excluding food and energy) is only 2. 4%, but it is a more worrying 5. 5% in Brazil and over 8% in India.

Core inflation rose a modest 0. 5% from the year before.

In the euro zone core inflation has recently held steady at 1. 1%.

Dave Greenlaw of Morgan Stanley notes that one component explains all the decline in core inflation: housing.

But core inflation is 1. 8%, within its range this decade.

Is it still confident that the upward creep in core inflation will be contained?

Core prices, which exclude food and energy, rose by 0. 2%, keeping the core inflation rate at 2. 5%.

With core inflation stubbornly over 2 per cent, the current 10-year yield of 3. 8 per cent seems a touch optimistic.

Core inflation in America is less than 1%.

This "core" inflation rate has gained just 0. 8 percent in the past year.

Friday's fresh consumer-price index data for September showed the annual core inflation rate at 0. 8%. That is the lowest since March 1961.

The Sub-Committee noted an information paper examining different approaches to measuring core inflation in Hong Kong.

But the core inflation rate, which excludes energy and food, rose as well, up 1. 9% from a year earlier

Asset Prices'Adjustment to Core Inflation Index

Asset Prices'Adjustment to Core Inflation Index