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Core CPI measures the change in the prices of goods and services purchased by consumers, excluding the volatile food and energy sectors. By removing these components, the indicator provides a clearer picture of underlying, long-term inflation trends. Central banks, including the Federal Reserve, often pay closer attention to 'core' figures to avoid making policy errors based on temporary price shocks in commodities.
Calculated using the same methodology as the headline CPI but with the food and energy sub-indices removed from the total basket. The MoM change is the percentage difference between the current core index and the previous month's core index.
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