What the core inflation rate measures
Core inflation takes the CPI, removes food and energy, and measures how much the rest of the basket rose over twelve months. The Bureau of Labor Statistics publishes this seasonally adjusted series as “all items less food and energy”. Removing those two categories, which make up about a fifth of household spending, leaves goods such as cars, clothing and furniture and services such as rent, insurance, medical care and travel.
How to read this chart
Core inflation moves slowly and in long waves, while headline inflation zigzags with gasoline and grocery prices. When the two lines diverge, core is usually the better guide to where inflation will settle. Watch for turning points: core peaked months after headline CPI in 2022, because rent and other services adjust with a long delay.
The latest reading in context
- At 2.6%, the latest reading is below its 5-year average of 4.1% and below its 10-year average of 3.1%.
- Of all 824 monthly readings since January 1958, 45% were lower than today’s and 55% were higher.
- Direction: up 0.1 points over the past month; unchanged over the past six months; down 0.5 points over the past year.
- The highest value on record is 13.6% (June 1980, 46 years ago); the lowest is 0.6% (October 2010, 16 years ago).
- The full history spans 10 US recessions, shaded grey on the chart.
Why it matters
Because food and energy prices are often set by weather, wars and global commodity markets that monetary policy cannot control, central banks focus on core measures to judge whether inflation is becoming entrenched. Bond markets and the Fed react strongly to surprises in monthly core CPI.
What moves the core inflation rate
- Shelter: rent and owners’ equivalent rent, the largest component
- Used and new vehicle prices
- Wages, which feed into prices of labor-intensive services
- Medical care and insurance costs
Key moments in its history
- 1980Peaked at more than 13%.
- 1990s–2010sSettled mostly between 1.5% and 3%.
- 2010Fell below 1% after the financial crisis.
- Sep 2022Reached 6.6%, the highest since 1982.
Core Inflation Rate data tables
Average by decade
| Decade | Average | High | Low |
|---|---|---|---|
| 2020s (so far) | 3.6% | 6.6% | 1.2% |
| 2010s | 1.8% | 2.4% | 0.6% |
| 2000s | 2.2% | 2.9% | 1.1% |
| 1990s | 3.2% | 5.7% | 1.9% |
| 1980s | 6.1% | 13.6% | 3.1% |
| 1970s | 6.5% | 11.9% | 2.5% |
| 1960s | 2.5% | 6.1% | 0.7% |
| 1950s | 2.1% | 2.8% | 1.7% |
Last 12 months
| Period | Value | Change |
|---|---|---|
| Sep 2026 | 2.6% | +0.1 pts |
| Aug 2026 | 2.4% | 0.0 pts |
| Jul 2026 | 2.5% | −0.1 pts |
| Jun 2026 | 2.6% | −0.3 pts |
| May 2026 | 2.8% | +0.1 pts |
| Apr 2026 | 2.7% | +0.1 pts |
| Mar 2026 | 2.6% | +0.1 pts |
| Feb 2026 | 2.5% | 0.0 pts |
| Jan 2026 | 2.5% | −0.1 pts |
| Dec 2025 | 2.6% | 0.0 pts |
| Nov 2025 | 2.6% | |
| Oct 2025 | n/a | not published |
Monthly values. Decade figures are averages of the monthly values in each decade. The complete history is available as a CSV file.
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Core Inflation Rate: questions and answers
Why exclude food and energy from inflation?
Not because they don’t matter, but because their prices jump up and down for reasons that usually reverse. Excluding them makes the underlying trend easier to see.
Is core inflation higher or lower than headline?
It depends on the period. When energy prices spike, headline is higher; when energy falls, as in 2015 and early 2023, core is higher. Over long periods the two average out to similar rates.
Does the Fed target core inflation?
The Fed’s official target is 2% for total PCE inflation, but policymakers watch core PCE most closely as a guide to the future.
Where does the data on this chart come from?
From the U.S. Bureau of Labor Statistics. ChartWidgets downloads the series (CPILFESL) from FRED, the Federal Reserve Bank of St. Louis database, and checks for new releases every day. The last update was on November 1, 2026.