Core inflation gives better sense of price trends: RBI

Mumbai: Core inflation gives a better sense of future price trends since it is less volatile, Reserve Bank of India Governor Duvvuri Subbarao said on Tuesday. He was speaking at the RBI's sixth statistics day conference.

"If one takes a longer series of over three years, there is some evidence that core inflation does have statistically significant predictive power," Subbarao said in the speech.

He also said headline inflation will definitely have a larger momentum than core inflation.

India's headline inflation slowed to its lowest level in five months in June helped by a moderation in fuel prices, adding to pressure from business leaders for a cut both in interest rates and fuel subsidies to help revive the lacklustre economy.