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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Shelter re-accelerated, core inflation came in hot, and the market immediately repriced the path of rates higher. Tony Zhang, CNBC, 13 May 2026 Gregory Daco, chief economist at EY-Parthenon, thinks the annual rate of inflation will surpass 4% in May, while core inflation (which strips out volatile food and energy costs) will approach 3%. Mary Cunningham, CBS News, 12 May 2026 The authors found tariffs have already had a measurable impact on inflation, specifically core inflation, which excludes volatile food and energy prices. Tristan Bove, Fortune, 11 May 2026 Still, the Fed typically pays more attention to core prices, and how much higher energy costs feed through to core inflation in the coming months will be a major factor in how the central bank decides on its next moves. Christopher Rugaber, Los Angeles Times, 1 May 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 20 May. 2026.

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