The core inflation rate is the price change of goods and services minus food and energy. The prices of food and energy products are volatile; they change so quickly that including these categories can skew an accurate reading of the true severity of inflation.

What is core inflation vs inflation?

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One common way economists use inflation data is by looking at “core inflation,” which is

generally defined as a chosen measure of inflation (e.g., the Consumer Price Index or CPI,

the Personal Consumption Expenditures Price Index or PCEPI, or the Gross Domestic Product

Deflator) that excludes the more volatile …

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