Core Inflation
Core inflation is the rate of price change in an economy measured by a price index that excludes volatile food and energy components, used to gauge underlying inflation trends. Two widely cited measures are core Consumer Price Index (CPI) and core Personal Consumption Expenditures Price Index (PCE).
Example: Example: In a monthly release, core CPI rose 0.3% while headline CPI rose 0.6% because of energy prices, illustrating how core inflation can diverge from the headline reading.
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