Updated 12/11/2021 I frequently receive this question in one form or another: Why doesn't the government consider food and energy and just tracks core inflation? The core inflation rate is frequently quoted in the popular press, and this gives the general public the impression that the "government" doesn't care about (or track) the rise in the prices of food and energy. Actually, this isn't true.  The core inflation rate is simply a component of the overall inflation rate. Economists use it because seasonal factors often skew the inflation rate. For instance, a drought might cause fruit crops to fail, causing fruit prices to rise. But this rise actually has nothing to do with … [Read more...]