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Markets & hours

Core inflation

Core inflation is the rise in consumer prices excluding items whose prices swing a lot, usually food and energy. Statistics agencies publish it with the main CPI figure, usually monthly, and central banks follow it to judge the underlying trend in prices. The release can coincide with higher volatility and wider spreads.

Also called: core CPI, underlying inflation, CPI excluding food and energy

Hypothetical example

Hypothetically, consumer prices rise 3.5% in a year, but excluding food and energy they rise 2.8%: core inflation is 2.8%.