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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But in 12 months, my Administration has driven core inflation down to the lowest level in more than five years. Time Staff, Time, 25 Feb. 2026 But in 12 months, my administration has driven core inflation down to the lowest level in more than five years. Dallas Morning News, 25 Feb. 2026 The most recent inflation data, for December, showed core inflation, which excludes volatile food and energy prices, running at 3%, as measured by the consumption expenditures price index, the Fed’s primary forecasting gauge. Jeff Cox, CNBC, 24 Feb. 2026 However, the final CPI for the year did show that some progress occurred: The overall and core inflation rates of 2.7% were cooler than January’s 3% and 3.3% rates, respectively, BLS data shows. Alicia Wallace, CNN Money, 13 Jan. 2026 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 16 Mar. 2026.

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