Headline inflation is a measure of the total inflation within an economy and is affected by areas of the market which may experience sudden inflationary spikes, such as food and energy. As a result, headline inflation may not present an accurate picture of the inflationary trend of the economy, since sector-specific inflationary spikes are unlikely to persist. This differs from core inflation (also called non-food-manufacturing inflation or underlying inflation), which excludes factors such as food and energy costs.
Most Western countries use both core inflation and headline inflation as measures of inflation, while countries like India prefer headline inflation.
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