Core inflation measures inflation excluding volatile items like food and energy. Headline inflation includes all items. If the excluded items (food and energy) experience higher price increases than the included items, then headline inflation will be higher than core inflation.
Core CPI inflation is generally lower than headline CPI inflation because
Asked in UPSC SO Steno 2017 · Topic: Money & Banking (Inflation: Types, Causes, Effects, and Monetary Policy Responses)
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Answer: A. food inflation is generally higher than non- food inflation
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