5 Core Inflation Examples in History
                     5 Core Inflation Examples in History
Rising prices of goods and services is an aspect that is hated by 
consumers the most. This is because it takes away the purchasing 
power of the consumer. Since an economy is nothing without the 
consumers, the economists make predictions in a certain way that 
excludes essential goods and services.

What is Core Inflation?
Inflation is something that each economic system experiences at times. It is the 
general rise in the prices of goods and services. Interestingly, slight inflation is 
even considered good, as it indicates that the economy is strengthening. As 
inflation is almost always certain, there are different concepts surrounding 
inflation, such as hyperinflation, disinflation, and core inflation. Core inflation is 
a prediction-based conceptual idea, in which, it is stated that the prices of 
staple aspects of living such as food and energy are not accounted for despite 
their price increase. This is because food and energy are not tied to economic 
structure, as these are essential needs of humanity. It is usually calculated by 
the consumer price index (CPI). A CPI is used to calculate the changes in how 
much households spend on goods and services from a list of fixed items. Core 
inflation is also important because it shows how consumers are adjusting to 
increased prices of goods and services.
Core Inflation Examples in History
1. The United States’ Core Inflation
The great recession took the entirety of the United States by storm. The collapse 
of the housing and banking system was so immense that it was felt across the 
globe. As for the United States, things became dire, as millions of people lost their 
jobs and houses. During this, the economists calculated the CPI with and without 
the inclusion of the food and energy sector. At the time, the statistics showed that 
there was a 5 percent increase in general CPI; however, only 2 percent of change 
was seen in CPI that excluded food and energy.
2. The United Kingdom’s Core Inflation
Unlike other nations that suffered immensely during the wars or were subject to 
natural calamities in the early 2000s, the United Kingdom remained relatively 
unphased. Although its economy has been on the rise, inflation rates in the UK 
have also been rising, making consumers lose their purchasing power. Since 
1997, prices of consumer goods and services have been increasing by 6 percent 
each year. Interestingly, the massive surge in consumer prices occurred amidst 
the coronavirus pandemic, as it was under 3 percent until 2017.
3. Japanese Core Inflation
The Japanese economy is one of its kind in the world because the government of 
Japan has introduced policies and laws to keep inflation as low as possible. While 
the core inflation rates remained stable for most of the early 2000s, Japan 
experienced inflation of 2 percent in 2009.
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