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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While the job market remains healthy and core inflation is easing, tariffs are introducing new economic uncertainty, Powell said. Catherine Baab, Quartz, 8 May 2025 Goldman Sachs estimates that tariffs on Canada and Mexico could push core inflation up by 0.7%, with retaliatory measures adding another 1-2%. Jack Kelly, Forbes.com, 7 Apr. 2025 At the same time, new economic data released on Friday shows that core inflation heated up last month, posing a challenge to the Federal Reserve's goal of driving inflation down to a 2% annual rate. Aimee Picchi, CBS News, 28 Mar. 2025 Annual core inflation, which does not include food and energy, is set to increase from 2.6 percent to 3.8 percent by December, based on the Personal Consumption Expenditures (PCE) price index. Amanda Castro hannah Parry, MSNBC Newsweek, 9 May 2025 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 1 Jun. 2025.

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