Core inﬂation measures
A) changes in the prices of the most commonly used goods, including food and energy.
B) underlying changes in the CPI, after accounting for the price volatility of high-tech goods.
C) underlying increases in the CPI after removing volatile food and energy prices.
D) changes in key input prices.

Question

Quizplus · Accepted Answer

Core inflation measures are designed to strip out the volatile components of the consumer price index (CPI), such as food and energy prices, and focus on underlying price pressures in the economy. Therefore, option C is the best answer as it accurately describes the definition of core inflation measures.

Core Inﬂation Measures