Inflation refers to the rate of increase in the level of prices from one period to another and is normally measured by percentage changes in the cost of a representative basket of consumer goods and services. In Trinidad and Tobago, the Retail Prices Index is the indicator used to measure inflation. Inflation is separated into “headline” and “core” inflation. Headline inflation refers to the change in the overall Retail Prices Index. On the other hand, core inflation in Trinidad and Tobago excludes changes in the prices of food, which can be quite volatile.