Core inflation is the percentage change in
A)the Consumer Price Index including the eight most volatile prices.
B)an inflation rate that ranges between 1 percent and 3 percent annually.
C)the Consumer Price Index excluding the eight most volatile prices.
D)the average of the 8 most volatile prices in the Consumer Price Index.
E)the target midpoint inflation rate of 2 percent per year.

Question

Quizplus · Accepted Answer

Core inflation refers to the Consumer Price Index excluding the eight most volatile prices, such as food and energy prices, which can fluctuate significantly in a short period of time. This measure is used to provide a better indication of underlying inflation trends and is often preferred by policymakers when making monetary policy decisions.

Core Inflation Is the Percentage Change in