To measure core inflation, the BLS excludes _______ from the basket of goods used to calculate the CPI.
A) food and energy
B) food, clothing, and housing
C) food and housing
D) housing and energy

Question

Quizplus · Accepted Answer

Core inflation is measured by the CPI excluding volatile items that can see frequent price fluctuations, such as food and energy. By excluding these items, core inflation is seen as a better indicator of underlying inflationary pressures on the economy.

To Measure Core Inflation, the BLS Excludes _______ from the Basket