Inflation report card. 
Welcome to the Know the Difference Minute for Thursday, January 12th. 
After peaking at 9.1% in June, the Consumer Price Index has fallen for 6 straight months. The headline number is 6.5%—but most economists consider what’s called Core CPI to be more important. That’s down at 5.7%.
What’s the difference? Core CPI removes energy and food prices which swing wildly and might function as a better signal of future prices. 
Inflation jumped coming out of the pandemic—and has been trouble since. The Fed increased rates 7 times last year—and will likely do it again at the next meeting. Labor market data is complicating matters—both initial and continuing unemployment claims have been lower than expected.  
Sure, this is a good sign. But keep in mind, the Fed’s inflation target is 2%. There is a big gap between reality and the target. 
I’m Dave Spano from Annex Wealth Management.  That is your Know the Difference Minute.