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
James C. CooperExamples of core inflation in a Sentence
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The country's core inflation rate — which strips out food and energy costs — held steady at 2% compared to the same month of the previous year, and 0.1% higher than May.
— Lim Hui Jie
Good morning from Singapore.
—Lee Ying Shan, CNBC, 1 July 2025
Fed staff upped their median December 2025 forecast for the unemployment and core inflation rates to 4.5% and 3.1%, respectively, both of which would be multiyear highs, and decreased its fourth-quarter real gross domestic product growth forecast from 1.7% to 1.4%.
—Derek Saul, Forbes.com, 18 June 2025
Inflation in Japan at its highest in two years
Japan’s core inflation rate climbed to 3.7% in May, the highest since January 2023.
—Yeo Boon Ping, CNBC, 20 June 2025
Tokyo’s Nikkei 225 index slipped 0.2% after Japan reported that its core inflation rate, excluding volatile food prices, rose to 3.7% in May, adding to challenges for Prime Minister Shigeru Ishiba’s government and the central bank.
—Stan Choe, Los Angeles Times, 20 June 2025
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Lee Ying Shan, CNBC, 1 July 2025
Fed staff upped their median December 2025 forecast for the unemployment and core inflation rates to 4.5% and 3.1%, respectively, both of which would be multiyear highs, and decreased its fourth-quarter real gross domestic product growth forecast from 1.7% to 1.4%.
—Derek Saul, Forbes.com, 18 June 2025
Inflation in Japan at its highest in two years
Japan’s core inflation rate climbed to 3.7% in May, the highest since January 2023.
—Yeo Boon Ping, CNBC, 20 June 2025
Tokyo’s Nikkei 225 index slipped 0.2% after Japan reported that its core inflation rate, excluding volatile food prices, rose to 3.7% in May, adding to challenges for Prime Minister Shigeru Ishiba’s government and the central bank.
—Stan Choe, Los Angeles Times, 20 June 2025
See All Example Sentences for core inflation
Cite this Entry
“Core inflation.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/core%20inflation. Accessed 16 Jul. 2025.
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