The Flexible Price Consumer Price Index (CPI) is calculated from a subset of goods and services included in the CPI that change price relatively frequently. Because flexible prices are quick to change, it assumes that when these prices are set, they incorporate less of an expectation about future inflation. Evidence suggests that this flexible price measure is more responsive to changes in the current economic environment or the level of economic slack. For further information about Flexible Price CPI, go to http://www.clevelandfed.org/Research/commentary/2010/2010-2.cfm.
Source: Federal Reserve Bank of Atlanta
Release: Sticky Price CPI
Federal Reserve Bank of Atlanta, Flexible Price Consumer Price Index less Food and Energy [COREFLEXCPIM157SFRBATL], retrieved from FRED, Federal Reserve Bank of St. Louis https://research.stlouisfed.org/fred2/series/COREFLEXCPIM157SFRBATL/, August 29, 2015.