core inflation

noun

economics
: a measure of inflation that excludes items having volatile prices (such as fuel and food) from the price index being used
The Federal Reserve's past emphasis on core inflation, which strips food and energy from the price indexes in order to gauge the underlying trend of prices, has always confused both Wall Street and Main Street.James C. Cooper
compare headline inflation

Examples of core inflation in a Sentence

Recent Examples on the Web
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What economists say The pickup in core inflation likely means the Federal Reserve will hold off on further rate cuts, said Ellen Zentner of Morgan Stanley Wealth Management in an email. Aimee Picchi, CBS News, 28 Mar. 2025 The stock market fell off a cliff during Friday trading, likely on news of higher core inflation, with the Dow Jones Industrial Average of major U.S. companies down more than 1.5 percent in midday trading. Tobias Burns, The Hill, 28 Mar. 2025 On a monthly basis, core inflation fell to 0.2 from 0.4 percent. Faisal Kutty, Newsweek, 12 Mar. 2025 In the first two months of the year, core inflation, which excludes volatile items such as food and energy, is estimated to have risen by just 0.3%, Macquarie’s Hu said, predicting that this would mark the longest deflationary streak since 1993. Anniek Bao, CNBC, 21 Mar. 2025 See All Example Sentences for core inflation

Word History

First Known Use

1979, in the meaning defined above

Time Traveler
The first known use of core inflation was in 1979

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Cite this Entry

“Core inflation.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/core%20inflation. Accessed 23 Apr. 2025.

Last Updated: - Updated example sentences
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