Inflation: Core vs. Headline

Labonte, Marc

Library of Congress. Congressional Research Service.

关键词: Economic policy;    Inflation;    Antiinflationary programs;    Currency devaluation;    Price regulation;   

RP-ID  :  RS22705
RP-ID  :  RS22705_2008May01

美国|英语

来源: UNT Digital Library

【 摘 要 】

Inflation measures the rate of change in all prices. Maintaining low and stable inflation is one of the primary goals of macroeconomic policy. But how should inflation be measured? Policymakers, particularly at the Federal Reserve, often refer to core inflation in their policy decisions. Core inflation is commonly defined as a measure of inflation that omits changes in food and energy prices.However, several studies have failed to find core inflation to be a good forecaster of future inflation, casting doubt on the very rationale for relying on it. This report outlines the differences between core inflation and headline inflation.