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Core inflation excludes prices of food and energy and represents an index that is completely out of touch with reality.
Critics have facetiously labelled it a 'cold and hungry' index.
Rotten Arguments
"It is time to drop the emphasis on core inflation as a meaningful way to interpret the inflation process in the U S," President of Federal Reserve Bank of St. Louise James Bullard said in a speech in New York Wednesday.
"Many of the old arguments in favor of a focus on core inflation have become rotten over the years."
The US Federal Reserve system is made up of a number of regional 'Feds', which is headed by a regional chief who takes turns in the Federal Open Market Committee that makes rate decisions.
Bullard is not serving on the FOMC at the money, but has earlier voted in favour of the second round of money printing (QE2) by Fed chief Ben Bernanke.
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The Federal Reserve of St. Louis has a strong record of an anti-inflationary stance including research during the