core inflation
Stripped-down price measure
Core inflation is a measure of price increases that excludes volatile categories like food and energy.
Economists and central banks favor it because it filters out temporary spikes—a cold snap raising heating costs, a drought raising grain prices—to reveal underlying inflation trends.
The Fed watches core inflation to guide interest rate decisions.
Inflation measurement abbreviation
- deflatorThing that shrinks pressure
- indexAlphabetical guide to contents
- basketWoven carrying vessel
- annualizedExpressed as yearly rate
year-over-year · weighted · underlying · econometrics · statistical · methodology · forecasting · benchmark
Consumable nourishment source
- energyPower to do work
- volatileLiable to sudden change
- shelterProtected place or structure
- housingDwellings or protective covering
rent · medical care · transportation · apparel · commodities · oil prices · gasoline · utilities
Central bank economic controls
- Federal ReserveUS central banking system
- central bankNational currency management institution
- interest ratesPrice paid for borrowing
- price stabilityConsistent general price levels
economic stability · macroeconomics · purchasing power · wage growth · consumer spending · Bank of Japan · tightening · dovish
Act of ascending
- fallingMoving downward freely
- stickyApt to adhere
- persistentContinuing despite difficulty
- elevatedRaised above usual level
subdued · anchored · accelerating · decelerating · moderating · uptick · cooling · heating
CPI
Inflation measurement abbreviation
annualized · year-over-year · weighted · underlying · econometrics · statistical · methodology · forecasting · benchmark · tracking
food
Consumable nourishment source
housing · rent · medical care · transportation · apparel · commodities · oil prices · gasoline · utilities · groceries
monetary policy
Central bank economic controls
- Federal ReserveUS central banking system
- central bankNational currency management institution
- interest ratesPrice paid for borrowing
price stability · economic stability · macroeconomics · purchasing power · wage growth · consumer spending · Bank of Japan · tightening · dovish · hawkish
rising
Act of ascending
- fallingMoving downward freely
- stickyApt to adhere
- persistentContinuing despite difficulty
elevated · subdued · anchored · accelerating · decelerating · moderating · uptick · cooling · heating · trajectory
- economic dataGDP, CPI, PPI, unemployment rate, employment data