headline inflation (1 Viewer)

[tamia]

what does it mean by 'headline inflation'?

 

[*Pooja*]

basically it is the CPI measure of inflation.
the tim reilley book said this: "the rate of change in CPI is measured quarterly - this is the headline inflation rate, since it covers price movements in a selected regimen of household expenditure."

from my view i thought it was the inflation rate plus inflation caused by one-off factors like the increase in prices due to the drought.

is this the same thing?

 

[kochou]

isn't headline inflation the one that's not taken seriously cos it takes into account one-off factors like selling off some equity or something?

not sure about the drought...is that counted?

 

[*Pooja*]

well its not really the drought thats counted. its the price increases in food and stuff that is counted. the drought is just a cause - its not the whole thing.

 

[kochou]

But like drought was the cause of the rise in prices, hence the factor....so it's counted as a one-off right? Along with SARS, war in Iraq.. (out of the context of inflation)

 

[*Pooja*]

yeah. but what?...the dsrought was the cause of the rise in prices?

 

[*Pooja*]

yeah. but what?...the drought was the cause of the rise in prices?