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.

Nashua Nutrition
What is core inflation vs inflation?

Image result for core inflation

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 …


Leave a Reply

Your email address will not be published. Required fields are marked *