The measure used by the Fed that excludes food and energy prices is the:
A) consumer price index.
B) wholesale price index.
C) core inflation rate.
D) federal funds rate.

Question

Quizplus · Accepted Answer

The measure used by the Fed that excludes food and energy prices is the core inflation rate. This is because food and energy prices tend to be more volatile than other prices and can distort the overall inflation rate. The Federal Reserve often focuses on the core inflation rate when making monetary policy decisions.

The Measure Used by the Fed That Excludes Food and Energy