BOM Core Inflation for February 2011

All the three underlying measures of inflation rose in February 2011. CORE1 inflation stood at 3.7 per cent for the twelve-month period ended February 2011, up from 3.4 per cent for the twelve-month period ended January 2011. CORE2 inflation increased from 3.0 per cent for the twelve-month period ended January 2011 to 3.2 per cent for the twelve-month period ended February 2011. A year earlier, CORE1 and CORE2 stood at 2.3 per cent and 3.4 per cent, respectively. 

TRIM10 inflation, which trims 5% of the most volatile items in the CPI on both sides of the distribution, rose to 3.5 per cent in February 2011, from 3.1 per cent for the twelve-month period ended January 2011. TRIM10 inflation stood at 2.5 per cent in February 2010

Notes:

1. Effective July 2007, Core inflation data are compiled using the new basket of goods and services derived from the 2006-07 Household Budget Survey.
2. CORE1 excludes “Food, Beverages and Tobacco” components and mortgage interest on housing loan from the CPI basket. 
3. CORE2 excludes Food, Beverages, Tobacco, mortgage interest, energy prices and administered prices from the CPI basket.
4. TRIM10 truncates 5 per cent of each tail of the distribution of price changes