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.
References in periodicals archive ?
CPI ex food and energy. The most commonly used measure of core inflation is the CPI excluding food and energy, published by the BLS.
While the CPI ex 8 components and the four other core inflation measures are all founded on some solid principles, no indicator is perfect.(15) Bryan, Cecchetti, and Wiggins argue that, by excluding a fixed set of components, measures like the CPI ex food and energy, CPI ex energy, and CPI ex 8 components will sometimes include large price changes that are relative price changes.
In all other instances, the trend volatility of the CPI ex energy was essentially the same as that of the CPI ex food and energy, the most commonly used measure of core inflation.
error) t-statistic 1-year ahead (b=12) CPI ex food and energy .02 -.27 (.33) -.82 Trimmed mean .01 .33 (.65) .52 Median CPI .03 .40 (.48) .85 CPI ex energy .08 .85 (.24) 3.49(*) CPI ex 8 components .00 -.18 (.55) .33 Addendum Adjusted trimmed mean .00 .20 (.69) .29 2-years ahead (b=24) CPI ex food and energy .02 .48 (.32) 1.52 Trimmed mean .10 1.73 (.67) 2.58(*) Median CPI .14 1.38 (.51) 2.72(*) CPI ex energy .17 1.90 (.43) 4.43(*) CPI ex 8 components .04 .83 (.71) 1.18 Addendum Adjusted trimmed mean .07 1.56 (.68) 2.28(*) Notes: The adjusted trimmed mean excludes 9 percent of the smallest and 7 percent of the largest percent changes in price, instead of 8 percent of each.
error) t-statistic 1-year ahead (b=12) CPI ex food and energy .20 .78 (.29) 2.70(*) Trimmed mean .35 1.29 (.26) 4.89(*) Median CPI .40 .97 (.19) 5.11(*) CPI ex energy .36 1.17 (.20) 5.91(*) CPI ex 8 components .28 .89 (.21) 4.25(*) Addendum Adjusted trimmed mean .35 1.24 (.25) 4.87(*) 2-years ahead (h=24) CPI ex food and energy .30 1.15 (.18) 6.37(*) Trimmed mean .46 1.80 (.22) 8.02(*) Median CPI .46 1.26 (.14) 8.81(*) CPI ex energy .39 1.50 (.23) 6.64(*) CPI ex 8 components .41 1.30 (.18) 7.41(*) Addendum Adjusted trimmed mean .44 1.73 (.22) 7.78(*) Notes: The adjusted trimmed mean excludes 9 percent of the smallest and 7 percent of the largest percent changes in price, instead of 8 percent of each.
The Federal Reserve's recent monetary policy reports to Congress have included discussions of consumer prices ex food and energy (Board of Governors of the Federal Reserve System).
In communicating with the public, the CPI ex food and energy and CPI ex energy may be preferable to the other three indicators of core inflation, which are more complex.
(4) This relationship holds only approximately for inflation in the CPI, CPI ex food and energy, and CPI ex energy.
The BLS did not begin publishing the CPI ex food and energy until 1978.
The CPI ex 8 components and CPI ex food and energy remove 11.8 and 22.9 percent of the CPI, respectively (December 2000), while the trimmed mean excludes 16 percent.