DEMO — development content for layout testing. Not real editorial reporting.
DEMO content for development and layout testing — not real editorial reporting.
Headline inflation captures changes in the price of a broad basket of goods and services. Core measures exclude volatile components such as food and energy to reveal underlying trends.
How it works
Drivers include demand pressures, supply shocks, wage dynamics and exchange-rate movements. Expectations play a self-reinforcing role when firms and workers build anticipated price rises into contracts.
Inflation can be measured in several ways, and each tells a slightly different story about price pressures.
What to watch
Central banks typically target a measure of consumer-price inflation over the medium term, looking through temporary shocks while guarding against persistent ones.
Key concepts
- Inflation
- Prices
