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Core inflation is different from headline inflation because the former
ignores articles of volatile nature in the price index
considers articles of volatile nature in the price index
is not based on commodity price index
considers only core items of consumption in the price index
.Core inflation is different from headline inflation because the core inflation ignores articles of volatile nature in the price index. Headline inflation is more CPI based as it measures the difference in inflation by calculating in prices of a basket of goods. Core inflation is a measure of inflation which does not include CPI components such as food, energy, fuel etc.
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