Core CPI

## What this measures

Core CPI is a monthly index of prices paid by urban consumers for goods and services, excluding food and energy. The index uses 1982-1984 as its base period (100).

## Why it matters

Food and energy prices swing sharply from month to month, making the headline inflation rate noisy. Core CPI strips out that volatility, giving a clearer view of underlying price trends that feed into wage negotiations, supplier contracts and central bank policy. When core inflation rises persistently, it signals broad cost pressures that are harder to reverse.

## How to read it

A rising index means prices are increasing; a falling index means deflation. Compare month-to-month or year-over-year changes to see the pace of inflation. The index level itself has meaning only relative to the 1982-1984 base or to earlier periods.

## What it does not say

Core CPI does not capture food or energy costs, so it understates the inflation households actually experience. It also does not indicate whether price changes stem from supply constraints, demand growth or monetary policy.

## Source

The Bureau of Labor Statistics publishes this series monthly. Palanor pulls it from the FRED API nightly.