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Economics vocabulary · Inflation and Prices

Core inflation

Meaning in economics, with examples

nounCommon term

In economics, core inflation means: A measure of inflation that leaves out the most volatile prices, usually food and energy, to show the underlying trend in prices.

In Turkish: çekirdek enflasyon

How it is used

Central banks watch core inflation closely because it shows whether price rises are spreading through the economy. The exact definition varies by country. The overall figure is called headline inflation.

Example sentences

  1. Headline inflation fell because of cheaper fuel, but core inflation is still stubbornly high.

  2. Core inflation, which excludes food and energy, rose to 3.3%.

Common collocations

  • core inflation rate
  • headline inflation
  • underlying inflation
  • sticky core inflation
  • inflationA general and continuing rise in the prices of goods and services in an economy, which means each unit of money buys less over time.
  • consumer price indexA measure of the average change over time in the prices that households pay for a fixed basket of goods and services, used to calculate inflation.
  • inflation targetThe rate of inflation that a central bank officially aims to achieve over the medium term, such as 2% a year.
  • central bankThe national institution that issues a country's currency, sets the main interest rate and works to keep prices and the financial system stable.

More terms: Inflation and Prices

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