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
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
In the first two months of the year, core inflation, which excludes volatile items such as food and energy, is estimated to have risen by just 0.3%, Macquarie’s Hu said, predicting that this would mark the longest deflationary streak since 1993. Anniek Bao, CNBC, 21 Mar. 2025 Expectations for 2025 core inflation, without the volatile food and energy components, is now 2.8% rather than 2.5%. Erik Sherman, Forbes, 20 Mar. 2025 The core inflation measure, excluding food and energy, was up 2.6% over the last 12 months, down from 2.8%. Axios, 28 Feb. 2025 Energy prices do not necessarily lead to large increases in core inflation; when energy prices surged in 2005, core inflation stayed below two percent. Jason Furman, Foreign Affairs, 10 Feb. 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 27 Mar. 2025.

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