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.
- Diapason45Lv 76 years agoFavorite 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.Source(s): http://ycharts.com/indicators/us_core_personal_con... http://www.mrsc.org/Subjects/finance/ipdpg.aspx http://www.investopedia.com/terms/p/pce.asp http://ycharts.com/indicators/personal_consumption...