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Are food and energy prices included in inflation rates?

So how is inflation even measured? Well, “there’s as many measures of inflation as there are economists studying it,” said Steven Deller, a professor of agricultural and applied economics at the University of Wisconsin-Madison. But the inflation rates we hear about most often do include health care, energy and food. Economists will sometimes look at a number called “core” inflation that takes out food and energy prices because they can fluctuate quite a bit.

Another main measure is the personal consumption expenditures price index, or the PCE. This measure, run by the Bureau of Economic Analysis, updates how items are weighted in its formula to better reflect consumer behavior, said Menzie Chinn, professor of public affairs and economics at the University of Wisconsin-Madison. Because of this, the PCE is in some sense more representative of the costs consumers face, Chinn said.