WEB Core CPI Remains Elevated Post-Energy Price Surge
Core CPI Excludes Energy and Food Prices
The Web Core CPI, which excludes volatile food and energy prices, continues to exhibit elevated levels. Despite recent setbacks in inflation, the core CPI remains above traditional targets.
Historical Context
The elevated core CPI is attributed to the months when energy prices soared. As these months gradually drop out of the calculation, the core CPI is projected to moderate. However, this moderation is expected to be gradual and not result in a significant decline in the core CPI.
Market Response
Market participants initially reacted with disappointment to the persistent inflation. However, recent forecasts suggest that the overall CPI may not have declined substantially last month. As a result, the market's focus has shifted to the long-term trajectory of inflation rather than short-term fluctuations.
Data Sources
The Web Core CPI is one of several inflation indicators. It provides a more stable representation of underlying inflation trends compared to the headline CPI, which includes volatile food and energy components.
May 13, 2024 at 11:26 am ET
By Vivien Lou Chen
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