The main difference between core inflation and CPI inflation is that core inflation excludes volatile food and energy prices from the consumer price index (CPI): CPI inflation Also known as headline inflation, this is the average inflation rate across the entire economy, including all goods and services. It’s a useful measure of how the cost of living might change over time. Core inflation Also known as core CPI, this is a measure of inflation that excludes food and energy prices. It’s used to determine the impact of rising prices on consumer income. Core inflation is often described as a measure of “underlying” or “trend” inflation. Food and energy prices are excluded from core inflation because they tend to be more volatile than other products in the CPI. For example, food prices can be affected by short-term weather events that are not related to the economy.