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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Annual core inflation, which does not include food and energy, is set to increase from 2.6 percent to 3.8 percent by December, based on the Personal Consumption Expenditures (PCE) price index. Amanda Castro hannah Parry, MSNBC Newsweek, 9 May 2025 Similarly, closely watched core inflation, which strips out volatile food and energy prices, fell to 2.6%, down from 3.0%. Laurent Belsie, Christian Science Monitor, 2 May 2025 Yet excluding the volatile food and energy categories, core inflation was 2.8%. Christopher Rugaber, Los Angeles Times, 25 Apr. 2025 Before the tariffs, the U.S. was seeing some progress on prices and core inflation last month was the lowest it's been in four years. Brittney Melton, NPR, 17 Apr. 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 15 May. 2025.

Last Updated: - Updated example sentences
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