what is core inflation? how is it different from real or nominal inflation? can any experts explain me in detail?
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Core inflation excludes the food and energy sectors which are more volatile as food and energy prices fluctuate over demand and supply. Like imagine onion prices rising from 20 to 200 that’s 1000% inflation and might disrupt the overall inflation figures alone. so a basket of stable less volatile sectors are taken to calculate the same like Real estate, cement, metal etc.
Non core or real or normal inflation takes account of the inflation in prices of a basket of essential goods and calculates the inflation in that. Like CPI.