Core Inflation Explained: What It Excludes
Summary
Hollow Point Trading shares a short explainer on core inflation and the consumer price index. It clarifies that the all-items CPI includes food and energy, while core inflation excludes these volatile categories to focus on other price changes.
https://youtu.be/O7YS45iPFCA
Core inflation excludes categories not household expenses #Shorts
Core inflation does not mean food and energy stopped costing money. The consumer price index for all items includes those categories. A commonly reported core index excludes food and energy to examine price changes outside those relatively volatile components. Imagine a simplified basket with eighty percent weight outside food and energy and twe...
