Ref: AI/Chat/Internet
Sure — here’s a concise, copyright-free summary:
CPI (Consumer Price Index) measures how the average prices of a set basket of goods and services change over time. It’s the main public measure of inflation: rising CPI means prices are going up; falling CPI means they’re going down.
Core CPI is the same calculation but without food and energy prices, which can swing sharply due to temporary factors like weather or oil markets. This makes Core CPI a better gauge of long-term inflation trends.
In relation to inflation:
- CPI shows the total price change felt by consumers.
- Core CPI focuses on underlying, broad-based price changes.
- If both rise, inflation is likely persistent; if CPI rises but Core CPI is stable, the price increase may be temporary.
If you want, I can also create a visual diagram showing CPI vs. Core CPI and how they connect to inflation trends.
