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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With core inflation well above the Fed's 2% target and little evidence of a decisive and sustained move toward that goal, policymakers will maintain their current policy setting. Sheryl Estrada, Fortune, 19 Mar. 2026 Officials on the Fed’s Open Market Committee, which votes on the trajectory of rate cuts, now see core inflation hitting 2.7% by the end of the year, up slightly from its December forecast. Brian Cheung, NBC news, 18 Mar. 2026 Fed officials expect core inflation, which excludes volatile food and energy costs, to also finish the year at 2.7%, up from a previous forecast of 2.5%. Aimee Picchi, CBS News, 18 Mar. 2026 Oxford Economics sees the Fed cutting rates in June and September, driven by moderating core inflation. Rachel Barber, USA Today, 15 Mar. 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 5 Apr. 2026.

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