The Year-over-Year Core CPI tracks the annual change in consumer prices excluding food and energy. It is considered a more stable and reliable measure of inflation for long-term economic planning. If Core CPI YoY remains consistently above the 2% target, it signals to the market that the Federal Reserve may maintain higher interest rates for a longer period to cool the economy.
The annual percentage change is calculated by comparing the current month's core index (all items less food and energy) to the core index from the same month in the prior year.
