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core inflation

economic

"Core inflation" helps economists and policymakers understand long-term inflation trends by excluding certain volatile items like food and energy.

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Definition

C1Economics

(technical)A measure of inflation that excludes the prices of food and energy to provide a clearer view of long-term trends.

Example

  • Policymakers often focus on core inflation to make decisions about interest rates.
  • Core inflation rose by 2% this year, indicating underlying price stability.