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What Is Core Inflation?
The key number that gets reported by the federal reserve, and thus gets reported in the press, is what's called core inflation. It's the rate of inflation that the us. Has experienced if you take out the prices of food and energy. The alternative is known as headline inflation. Why would the fed want to promote core inflation rather than using headline inflation? There are several arguments that seek to justify one of the most prominent is that food and energy prices are too volatile.