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Ex-Food and Energy

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Ex-Food and Energy
A measure of inflation in the United States that considers what people spend on staple goods and services other than food and energy. It is calculated by taking the average of price changes to a basket of goods and services compiled by the U.S. Department of Labor. The ex-food and energy index is identical to the Consumer Price Index except that it leaves out food and energy. Some consider the ex-food and energy index a more reliable measure of inflation, as food and energy prices are quite volatile. Critics, however, contend that leaving these prices out does not adequately measure short-term changes in the real value of money.


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