In view of formulating credible monetary policy to attain the price stability objective, the difficult part for the central banks is to distinguish, within ongoing inflation evolutions, between short term volatility and the underlying pressure of inflation. While it has now become a standard practice for most central banks around the world to monitor core inflation, little progress has so far been made in the Indian context. This paper takes a pioneering look in measuring core inflation in India focusing on the popular exclusion and trimmed mean approaches. The performance criteria adopted in this analysis show that the measure of core inflation developed in the paper has strong money-induced characteristics and therefore, can credibly be used as a short or medium term guide of monetary policy in India. This paper aims to introduce the concept of core inflation and to calculate alternative measures of core inflation for India. We have used two approaches: (1) Exclusion based approach (2) Trimmed mean method, to identify the measures of core inflation. We have obtained five alternative measures of core inflation using exclusion approach these are: WPI excluding food articles, WPI excluding food articles and non food articles.