Core inflation
Core inflation, also known as underlying inflation, is the baseline pace of price increases, stripped of temporary swings. Its most closely followed version removes food and energy, two categories that swing with oil prices and harvests; it exists for the CPI as well as for the PCE. In September 2026, headline CPI gained 0.6% over the month, driven by gasoline (+9.1%), while core rose only 0.3%. It is the standard of Fed chair Kevin Warsh: underlying inflation moving to the objective “clearly and at sufficient speed.” Step-by-step reading: the guide to economic releases.
See also
The index that tracks, month after month, the prices US consumers pay.
The price index on which the Fed defines its 2% inflation target.
The set of levers a central bank uses to steer inflation and employment.