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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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
According to the Personal Consumption Expenditures price index most closely followed by the Federal Reserve, core inflation — which strips out volatile items like food and gas prices — fell to 2.5% in April.
—David Goldman, CNN Money, 20 June 2025
Goldman Sachs analysts estimate that core inflation as measured by the personal consumption expenditures index, which tracks consumer spending, to rise this year to 3.8%, up from 2.6% in March.
—Alain Sherter, CBS News, 8 May 2025
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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
According to the Personal Consumption Expenditures price index most closely followed by the Federal Reserve, core inflation — which strips out volatile items like food and gas prices — fell to 2.5% in April.
—David Goldman, CNN Money, 20 June 2025
Goldman Sachs analysts estimate that core inflation as measured by the personal consumption expenditures index, which tracks consumer spending, to rise this year to 3.8%, up from 2.6% in March.
—Alain Sherter, CBS News, 8 May 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 30 Jun. 2025.
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