Headline Inflation
Headline inflation reflects the extent to which the prices of all goods and services in an economy have risen in a given period. Headline inflation rate is a measure of the rate at which the cost of living in an area has increased. Headline inflation is not an accurate representation of the underlying rate of inflation, since it takes into account food and energy prices which are highly volatile in nature. Therefore, for the purpose of formulating monetary policy, economists generally do not consider headline inflation.
