The core inflation rate, measured by the core PCE deflator, measures changes in the
A) price of only two consumer goods: food and fuel.
B) prices of all consumer goods.
C) prices of consumer goods except the ones for food and fuel.
D) prices of consumer goods except the ones for health care.

Question

Quizplus · Accepted Answer

The core inflation rate, measured by the core PCE deflator, excludes the prices of food and fuel because these items can have volatile price movements, providing a clearer view of the underlying inflation trend.

The Core Inflation Rate, Measured by the Core PCE Deflator