Down with Core Inflation

I think it’s time to kill the concept of core inflation. For years, economists and policymakers have relied on core inflation—which excludes food and energy prices—as a way to measure underlying inflation. The argument has always been that these categories are too volatile to provide a reliable picture. But I believe that thinking is outdated and increasingly misleading. We all need gasoline, and we all need to eat. More importantly, rising food and energy costs are no longer just temporary disruptions. The effects of geopolitical conflicts, climate change, immigration policies affecting agricultural labor, and higher fertilizer costs are creating longer-term pressures on both categories. The September inflation numbers illustrate why I think we need to pay more attention to all-items CPI. Overall inflation accelerated to 3.7%, up from 3.4% in August, while core inflation rose to 2.6% from 2.4%. Although the core number looks more reassuring, both measures are moving in the wrong direction. I argue that excluding the costs of everyday necessities gives investors and policymakers an incomplete picture of the inflation Americans are actually experiencing. It's time to rethink how we measure inflation and stop pretending that food and energy don't count. Death to core inflation! Make sure to subscribe for more stocks and economic news daily: Substack: https://economicsforinvestors.substack.com/ Subscribe for free daily posts and articles: https://www.jubakpicks.com/ More in-depth tips for asset management: https://jubakam.com/ Core Inflation, Inflation, CPI Report, Consumer Price Index, All Items Inflation, Food Prices, Energy Prices, Rising Inflation, Inflation Trends, U.S. Economy, Economic Outlook, Federal Reserve, Interest Rates, Global Warming and Inflation, Oil Prices, Gasoline Prices, Agricultural Costs, Inflation Forecast, Investing, Stock Market Analysis, Jim Jubak, Jubak Picks, Jubak AM, Economics for Investors #inflation #coreinflation #stockmarket #economics