“You might be just a trifle curious about how the use of the core rate of inflation (leaving out food and energy) came into being.  The core rate of inflation was the brainstorm of Arthur F. Burns, chairman of the Federal Reserve during the early 1970s. The object of this exercise was to take people’s eyes off what was really happening to prices so that the Fed of that era could run an ultra-easy monetary policy. The professorial Burns managed to convince the Congress, the government’s statistical agencies, the press and his fellow economists that excluding food and energy was the right way to look at prices.”

http://www.marketwatch.com/story/inflation-is-rotten-to-the-core-2013-07-30

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