Underlying inflation

Core inflation is inflation without taking into account energy and unprocessed food, whose prices are much more affected by the weather and international conflicts than other products and services.

Core inflation shows, better than inflation, the changes that occur in prices in the short and medium term. It is also generally more stable than inflation, as it does not reflect the typical "swings" in energy prices.

It is very useful for central banks to see the evolution of prices without the influence of the more volatile products, such as energy (gas, electricity, gasoline) and unprocessed food, and thus to analyze how monetary policy affects the evolution of underlying inflation.