Inflation Indicator
Core CPI (Excluding Food & Energy)
Updated 2026-03-12 · Monthly · Source: Bureau of Labor Statistics · Next release: 2026-04-10
Historical Trend
| Date | Value |
|---|---|
| 2026-03 | 3.1% |
| 2026-02 | 3.2% |
| 2026-01 | 3.3% |
| 2025-12 | 3.2% |
| 2025-11 | 3.3% |
| 2025-10 | 3.3% |
| 2025-09 | 3.3% |
| 2025-08 | 3.2% |
| 2025-07 | 3.2% |
What This Means for Business
Core CPI at 3.1% shows that underlying inflation remains sticky above the Fed's 2% target. Housing costs and services inflation are the primary culprits. For executives, sticky core inflation means the Fed is unlikely to cut interest rates soon, keeping borrowing costs elevated. Budget planners should assume inflation-adjusted cost increases of 3%+ for services, labor, and real estate.
About Core CPI
Core CPI measures consumer price changes excluding food and energy, which are volatile and often driven by supply factors rather than monetary policy. It is the Fed's preferred gauge of underlying inflation trends.
Methodology
Core CPI uses the same methodology as headline CPI but excludes the food and energy components of the basket. This removes about 22% of the index weight. Shelter costs (rent and owners' equivalent rent) are the largest component of core CPI at roughly 44% of the core basket.
Related Indicators
Frequently Asked Questions
Why is core CPI higher than headline CPI right now?
Core CPI is currently higher because energy prices have moderated (pulling headline CPI down) while housing and services costs remain elevated. Shelter inflation is especially sticky because it reflects rents that only reset annually and uses 'owners equivalent rent' which lags actual housing market changes by 12-18 months.