Core Inflation

An inflation measure, which excludes items which move in a volatile fashion and so provides a clearer picture of underlying inflationary trends. Different countries measure core inflation in different ways, though food and energy prices are often excluded from the basket of goods and services on which the index is based.

See also: CPI, RPI, Inflation, PPI, http://www.frbsf.org/education/activities/drecon/2004/0410.html