Headline inflation is a measure of the total inflation within an economy, including commodities such as food and energy prices (e.g., oil and gas), which tend to be much more volatile and prone to inflationary spikes. On the other hand, "core inflation" (also non-food-manufacturing or underlying inflation) is calculated from a consumer price index minus the volatile food and energy components.[1] Headline inflation may not present an accurate picture of an economy's inflationary trend since sector-specific inflationary spikes are unlikely to persist.
^James B. Bullard (April 2011). "President's Message: Headline vs. Core Inflation: A Look at Some Issues". The Regional Economist. Federal Reserve Bank of St. Louis.
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Headlineinflation is a measure of the total inflation within an economy, including commodities such as food and energy prices (e.g., oil and gas), which...
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