Core inflation measures price changes:

Question

Quizplus · Accepted Answer

Core inflation measures the price changes for the entire market basket, but with food and energy costs taken out of the basket. This is done to focus on the underlying trend in inflation, as food and energy prices can be volatile and subject to external factors such as weather and global events. Option A and D measure inflation with all components included, while option B uses a different index focused on pricing of goods at the wholesale level.

Core Inflation Measures Price Changes