Clearly Core

The Fed is currently focusing on what is called super-core inflation, defined as overall CPI minus food and energy, goods, and housing. Food and energy are 11% of consumer spending, housing is 16%, and goods are 24%. Thus, super-core inflation includes 49% of overall consumer spending. It’s now important since it’s where Covid has had minimal inflationary impact and thus is suggestive of where inflation is likely headed.

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