Inﬂation, as measured by percentage changes in the CPI,
A) concerns policymakers more than the level of core inﬂation.
B) does not include the most price-ﬂexible goods in the economy.
C) is generally less volatile than core inﬂation.
D) is generally more volatile than core inﬂation.

Question

Quizplus · Accepted Answer

Inflation, as measured by percentage changes in the CPI, is generally more volatile than core inflation. This is because the CPI includes a wider range of goods and services, some of which may be subject to larger price fluctuations than others. Core inflation, on the other hand, excludes volatile items such as food and energy prices, which can make it a more stable measure of underlying inflationary pressures.

Inﬂation, as Measured by Percentage Changes in the CPI