Headline inflation:
A) includes all of the goods the average consumer buys.
B) is based on the CPI basket of goods.
C) core inflation plus the prices of food and energy.
D) All of these statements are true.

Question

Quizplus · Accepted Answer

Headline inflation is a measure of the total inflation within an economy, including all goods and services that the average consumer buys, which is reflected in the Consumer Price Index (CPI) basket. It encompasses core inflation (which excludes volatile items like food and energy) plus the prices of food and energy.

Headline Inflation