2025 · Q117
Core inflation is:
General KnowledgeIndian Economy
- ACPI headline inflation minus all non-food items
- BWPI inflation minus all food and non-food items
- CCPI headline inflation minus food and energy items
- DWPI inflation minus food and energy items
Explanation
Core inflation is measured as CPI headline inflation excluding the volatile food and energy components, giving a better sense of underlying price pressures. The WPI-based variants are not the standard definition of core inflation in India. The RBI watches core inflation closely when setting the repo rate under its inflation-targeting framework.