Core inflation:
A) excludes goods with historically volatile price changes.
B) is the overall rise in prices in the economy.
C) excludes durable goods.
D) is not regularly tracked by the BLS.

Question

Quizplus · Accepted Answer

Core inflation is a measure of inflation that excludes goods and services that have historically volatile price changes, such as food and energy. This is because the prices of these goods can be affected by factors outside of the control of monetary policy, such as weather or geopolitical events. By focusing on core inflation, economists and policymakers can get a better understanding of underlying price trends that are more likely to be influenced by monetary policy.

Core Inflation