Core Inflation

Core inflation measures price rises excluding food and fuel, whose prices swing with weather and global markets. It captures the more persistent inflation in services and manufactured goods, such as rent, school fees and clothing.

Why It Matters

Central banks watch core inflation because it shows whether price rises are spreading and sticking.

In India

In September 2025, headline inflation was 1.54% but core inflation was above 4%, because falling vegetable prices masked rising service costs.