Core inflation climbs to 3.4% in May
What is core inflation?
Core inflation is a measure of the change in the prices of goods and services, excluding food and energy. It is a key indicator of underlying inflation trends, as food and energy prices can be volatile.
How is core inflation calculated?
Core inflation is calculated by taking the Consumer Price Index (CPI) and excluding the food and energy components. The CPI is a measure of the average change in prices paid by urban consumers for a basket of goods and services.
Why is core inflation important?
Core inflation is important because it provides a measure of inflation that is not influenced by short-term fluctuations in food and energy prices. This makes it a more reliable indicator of the underlying trend of inflation.
What are the latest core inflation numbers?
According to the Bureau of Labor Statistics, core inflation increased by 3.4% in May of 2024 over the same month in the previous year. This is the highest level of core inflation since December of 2021.
What is the outlook for core inflation?
The outlook for core inflation is uncertain. Some economists believe that it will continue to rise in the coming months, while others believe that it will start to moderate. The Federal Reserve is closely monitoring core inflation and is prepared to raise interest rates if necessary to keep it under control.
Komentar