core inflation


: 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 David Ely, San Diego State University YES: While inflation has declined over the past year, common measures of headline and core inflation are still above the Fed’s target of 2 percent. Phillip Molnar, San Diego Union-Tribune, 1 Sep. 2023 Japan’s core inflation, which excludes fresh food products, rose 3.1% in July, following a 3.3% increase in June. Bywill Daniel, Fortune, 29 Aug. 2023 The federal government last week released data showing that core inflation, which excludes volatile food and energy costs, was down to an annual pace of 4.7% in July, with overall inflation at a slower-than-expected 3.2%, still above the central bank's 2% target. Harold Maass, The Week, 14 Aug. 2023 This significant and beneficial decline in energy prices is part of why the core inflation reading, excluding food and energy, remains elevated relative to the headline. Bill Stone, Forbes, 13 Aug. 2023 The Bank of Canada is expressing deeper concern about the stickiness in elevated core inflation, says Sebastien Lavoie, chief economist at Laurentian Bank Securities. WSJ, 12 July 2023 Enter Email Sign Up Central bankers tend to more closely monitor a measure of core inflation that strips out volatile food and fuel prices to give a clearer sense of the underlying price trend. Jeanna Smialek,, 31 Aug. 2023 That offset a fall in the cost of goods, leaving core inflation unchanged at 6.9%. Hanna Ziady, CNN, 16 Aug. 2023 The Fed, economists and investors, though, pay particular attention to core inflation figures for signs of where price pressures might be headed. Compiled By Democrat-Gazette Staff From Wire Reports, Arkansas Online, 11 Aug. 2023 See More

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.” Dictionary, Merriam-Webster, Accessed 22 Sep. 2023.

Last Updated: - Updated example sentences
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