Core CPI

Core CPI is the underlying-trend read on the index that touches household finances directly — the headline CPI it's built on drives Social Security cost-of-living adjustments, TIPS principal accruals, and many wage contracts. Core strips out food and energy to show the trend underneath, which is what the Fed actually steers by. It runs slightly hotter than Core PCE on average, so readings look worse in absolute terms, but the trend direction tells the same story the Fed is reading. For anyone asking whether raises and savings are keeping up with real costs, headline CPI is the reference point; for markets, the Core print is a reliable monthly volatility event.