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S asked in Social ScienceEconomics · 6 years ago

Core Consumer Price Index (US) less food and energy?

Can someone explain to me what exactly this is? and what direction we are headed in at our current pace. A website with charts and information would be great especially if it shows the trend for the past 2 years and future projections, graphs also welcomed :) future thanks.

1 Answer

  • 6 years ago
    Favorite Answer

    The Core-CPI was introduced in 1973 when food and oil prices were rather volatile. The Fed wanted an index that was less subject to short term data-movements.

    Then on 25th January 2012, the Fed announced it would stop publishing the core-CPI and use instead the Personal Consumption Expenditures index.

    As a result, there have been no Core-CPI data produced for the last two years.

    But there is the Core-PCE (CPCE) price index still being published and it still excludes the more changeable and seasonal food and energy prices. Just like the old Core-CPI did.

    Both [all] these indices are politically determined to hide the real and effective changes in the cost of living; which might damage political parties. Serious investors and corporate planners ignore them.

    Data for Core-CPE are available at the sources below.

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