CPI is a common yet important indicator for inflation and the Central bank makes its monetary decisions based on CPI.
Core CPI eliminates food and energy price from CPI, removes price volatilities caused from international supply and demand swings, and reflects more profoundly the household purchasing activities.
Fed's main goals are:
1. Maximize employment
2. Stabilize consumer prices
3. Moderate long-term interest rates
Fed has targeted inflation at 2%.
US Consumer Price Index (SA, YoY)2021-055.00%
US Core Consumer Price Index (SA, YoY)2021-053.80%