Warning signal for economy as headline inflation heads to high core

Rate of core price rise has been over 5% for over two years and remained over 6% for five months till Oct

Core retail inflation rose from 6.3 per cent in September to 6.5 per cent in October even as the overall rate of price rise eased from 7.41 per cent to 6.77 per cent, indicating price pressures will sustain longer than expected.

The rate of core price rise has been over five per cent for over two years now and remained over six per cent for five months till October in the current financial year.

Core inflation refers to the rate of price rise in non-food and non-fuel items. Food and fuel prices are considered volatile and hence core inflation represents