On the other hand, some items that are not excluded from the U.S. core measures, such as airline fares, tobacco, and apparel, are extremely volatile and thus are unlikely to be included in an optimal core inflation measure. The Bank of Canada, for example, uses a more targeted approach to its core inflation indicator, the CPIX.
Of fifty-four consumer product categories, it excludes eight, which account for about 16 percent of the consumption basket (Macklem, 2001). Most of the eight items are also excluded from the standard core measure in the United States. However, Canada's CPIX also excludes intercity transportation and tobacco, which are included in the U.S. core measures.