Shouldn't core inflation include everythign that "regular people" need to keep food on the table and a roof over their head and a basic existence (health care)?
> Shouldn't core inflation include everythign that "regular people" need to keep food on the table and a roof over their head and a basic existence
That’s headline inflation. It’s politically relevant. If you're running for Congress or the President of the United States, this is the one that gets you in and out of office.
Core inflation is monetarily and thus more financially relevant. It singles out what central banks can strategically respond to. (You don’t want to raise rates because an energy exporter invaded a food exporter; rates aren’t the problem.)
