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April 1996Volume 2 Number 4Core CPI: Excluding Food, Energy. . . And Used Cars? Richard W. Peach and Karen AlvarezAlthough used car prices represent only a small portion of the consumer price index,
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01
Begin by gathering the necessary data related to consumer prices, such as the price index for various goods and services.
02
Exclude the data related to food prices from the overall calculation. This can involve removing or not including any data or information directly related to foods and beverages.
03
Calculate the weighted average of the remaining consumer price index components to determine the core CPI excluding food. This entails assigning appropriate weights to each component based on its significance in the overall basket of goods and services.
04
Use the formula provided by the relevant statistical agency or organization to accurately calculate the core CPI excluding food.
05
Double-check your calculations and ensure all the inputs are correctly entered.
06
Once you have calculated the core CPI excluding food, you can use it to analyze and monitor inflationary trends and economic indicators.

Who needs core CPI excluding food?

01
Economists and researchers interested in studying inflationary trends and understanding the impact of price changes on the economy.
02
Central banks and policymakers who rely on accurate inflation measures to make informed decisions related to monetary policy.
03
Investors and financial analysts who take inflation into account when making investment decisions.
04
Businesses and industries that want to assess the overall price changes in the economy, excluding the volatile food sector, to better understand market trends and consumer behavior.
05
Government agencies and organizations that utilize CPI data as inputs for other economic indicators and reports.
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Core CPI excluding food is a measure of inflation that excludes the changes in the price of food from the Consumer Price Index.
The Bureau of Labor Statistics is responsible for calculating and reporting core CPI excluding food.
Core CPI excluding food is calculated based on data collected from consumer purchases over a specified period of time.
The purpose of core CPI excluding food is to provide a more accurate measure of underlying inflation trends by removing the volatility in food prices.
Core CPI excluding food reports changes in prices for all items except food.
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