Definitions for "Underlying Inflation"
An inflation rate that only takes into consideration items that are directly related to the economy, and excludes things affected by factors outside the general economy.
A calculated measure that takes the headline inflation rate and excludes certain volatile items or series that are affected by factors other than general economic conditions (eg. government taxes, or the effect of weather on fruit and vegetable prices). The resulting rate is based on only those items directly related to the economy.
A calculation of the economy that takes the headline inflation rate (overall inflation rate) and excludes items and issues affected by conditions other than the general economy, like government taxes, or the effect of weather on fruit and vegetable prices. The resulting rate, then, is based on only those items directly related to the economy.