DMPQ:What do you understand by the term Headline Inflation and core inflation?

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 price index minus the volatile food and energy components.Headline inflation may not present an accurate picture of an economy’s inflationary trend since sector-specific inflationary spikes are unlikely to persist.

Core inflation represents the long run trend in the price level. In measuring long run inflation , transitory price changes should be excluded. One way of accomplishing this is by excluding items frequently subject to volatile prices, like food and energy.

KPSC Notes brings Prelims and Mains programs for KPSC Prelims and KPSC Mains Exam preparation. Various Programs initiated by KPSC Notes are as follows:- For any doubt, Just leave us a Chat or Fill us a querry––

Hope we have satisfied your need for KPSC Prelims and Mains Preparation

Kindly review us to serve even better


KPSC Mains Test Series 2020

20 Quality mock tests and GS Mains Notes

Mains Test Series and Notes

Mains Printed Notes (With COD)


KPSC Prelims Test Series 2020

24 Quality mock tests and GS Prelims Notes

Prelims Test Series and Notes

Prelims Printed Notes (With COD)

Subscribe to KPSC Notes

Never Miss any KPSC important update!

Join 2,058 other subscribers

error: Content is protected !!