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 Overall, core inflation has generally trended down over the past 12 months, in evidence that the Fed’s tightening is starting to pay off. Zachary Halaschak, Washington Examiner - Political News and Conservative Analysis About Congress, the President, and the Federal Government, 12 June 2024 While Fed leaders have been vague on exactly what set of economic metrics would prompt a rate cut, 60% of the economists said an important catalyst would be three consecutive positive core inflation reports. Eva Roytburg, Fortune, 8 June 2024 But as housing costs continue to be the biggest driver of core inflation, renters are feeling increasingly disillusioned with politicians. Swapna Venugopal Ramaswamy, USA TODAY, 21 May 2024 In January, core inflation was 2.8%, according to the Fed’s preferred measure. Christopher Rugaber, Fortune, 20 Mar. 2024 Plus, economists pointed to core inflation readings averaged over the past three and six months to tease out more recent trends. Rachel Siegel, Washington Post, 12 Mar. 2024 They may soon be seen in even softer core inflation readings. Heard Editors, WSJ, 15 Nov. 2023 Economists see core inflation as a sign of where overall inflation may be headed. Paul Wiseman, Quartz, 11 Apr. 2024 Related article Rate cuts likely won’t happen until the summer, Atlanta Fed chief says Excluding gas and food prices, categories that tend to be more volatile, core inflation rose 0.4% from the month before, bringing the annual rate to 3.8%, the same as February’s reading. Alicia Wallace, CNN, 10 Apr. 2024

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'core inflation.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

Word History

First Known Use

1979, in the meaning defined above

Time Traveler
The first known use of core inflation was in 1979

Dictionary Entries Near core inflation

Cite this Entry

“Core inflation.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/core%20inflation. Accessed 24 Jun. 2024.

Last Updated: - Updated example sentences
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