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Headline Inflation

AnalyticsTrade Team
AnalyticsTrade Team Last updated on 26 Apr 2023

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Headline Inflation

Headline inflation is a measure of the rate of change in the prices of goods and services in an economy over a period of time. It is usually expressed as a percentage and is calculated by taking the difference between the current price of a basket of goods and services and the price of the same basket in the previous period. Headline inflation is an important indicator of the health of an economy and is closely monitored by central banks and governments.

History of Headline Inflation

Headline inflation has been used as an economic indicator since the early 20th century. It was first developed by the British economist William Stanley Jevons in the late 19th century. Jevons used the concept of the โ€œprice indexโ€ to measure the rate of change in the prices of goods and services. This concept was later adopted by other economists and central banks around the world.

In the United States, the Bureau of Labor Statistics (BLS) began tracking headline inflation in the early 1920s. The BLS publishes the Consumer Price Index (CPI), which is a measure of the average change in prices of goods and services purchased by consumers. The CPI is used to measure headline inflation in the United States.

Table of Comparisons

Year Headline Inflation (CPI)
2020 1.3%
2019 2.3%
2018 2.4%
2017 2.1%
2016 1.3%

Summary

Headline inflation is an important economic indicator that measures the rate of change in the prices of goods and services in an economy over a period of time. It is closely monitored by central banks and governments and is used to inform economic policy decisions. For more information about headline inflation, visit the websites of the Bureau of Labor Statistics in the United States or the Office for National Statistics in the United Kingdom.

See Also

  • Core Inflation
  • Consumer Price Index (CPI)
  • Producer Price Index (PPI)
  • Gross Domestic Product (GDP)
  • Monetary Policy
  • Fiscal Policy
  • Interest Rates
  • Exchange Rates
  • Inflation Targeting
  • Deflation

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