The core inflation rate 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 food and fuel.
D) prices of consumer goods except health care.
E) prices of all the "core" goods and services a typical family buys.

Question

Quizplus · Accepted Answer

The core inflation rate measures changes in the prices of consumer goods except food and fuel, which are considered volatile and subject to seasonal or supply shocks. This allows policymakers to better gauge long-term trends in inflation and adjust monetary policy accordingly.

The Core Inflation Rate Measures Changes in the