Dr. Ed’s
Economic
Indicators

CORE INFLATION INDEX

Release Date: Monthly
Release Coverage: Prior Month's Data
Released By: Bureau of Economic Analysis
Official Release (daily): http://www.bea.gov/newsreleases/national/pi/pinewsrelease.htm

The Federal Reserve defines core inflation as, "a measure of inflation that excludes the rate of increase of prices for certain volatile components in price indexes." The Federal Reserve pays particular attention to the rate of growth of the core personal consumption expenditure (PCE) deflator, which excludes food and energy prices. It reflects the price of expenditures made by households, including those made on behalf of households.

WHAT DR. ED SAYS:

The core inflation index will give you further insight into the inflationary picture. Although it is similar to the CPI, it is measured with different weights and excludes volatility and outliers. Monitoring the CPI in comparison to the core inflation index will allow you to depict the current environment as it pertains to volatility in prices. It is generally accepted that the core inflation index should rise between 2 and 3 percent at an annualized rate.

Your subscription request
has been sent!
submit