Core inflation

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.

''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.''

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

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.

Publications

 * ECB, Research & Publications, Macroeconomic projections, Eurosystem staff macroeconomic projections for the euro area, published on 3 December 2015
 * ECB, Research & Publications, Economic Bulletin, Focus Are sub-indices of the HICP measures of underlying inflation?, Monthly Bulletin 12/2013
 * Federal Reserve Bank of St. Louis Review, Core inflation: A review of some conceptual issues, Mark A. Wynne, May/June 2008, pp. 205-228.
 * ECB, Working Paper Series, An evaluation of some measures of core inflation for the euro area, Juan Luis Vega, Mark A. Wynne, Working paper N° 53, April 2001.
 * ECB, Working Paper Series, Measuring core inflation in the euro area, Claudio Morana, Working paper N° 36, November 2000.