A Study on the Dynamic Behaviour of Headline Versus Core Inflation: Evidence from India

This article attempts to understand the dynamic response of core inflation and headline inflation to macroeconomic variables in the context of India. First, core inflation is calculated using the conventional exclusion measure (excluding food and energy components) and the statistical measure (asymmetrical trimmed mean, weighted median and exponential smoothing approach) by taking the monthly Consumer Price Index y-o-y inflation data from...