The core rate of inflation excludes food and energy prices because:
A)these prices don't change very frequently.
B)these prices are most frequently responsible for short-run fluctuations in the inflation rate.
C)consumers do not directly face these prices.
D)these prices do not matter to policymakers.

Question

Quizplus · Accepted Answer

Food and energy prices are excluded from the core rate of inflation because they are highly volatile and can cause short-term fluctuations in the inflation rate, making it difficult to assess the underlying inflation trend.

The Core Rate of Inflation Excludes Food and Energy Prices