The core personal consumption expenditures price index excludes
A)food and energy prices.
B)food and housing prices.
C)energy and housing prices.
D)housing and health care prices.
E)alcohol and tobacco prices.

Question

Quizplus · Accepted Answer

The core PCE price index excludes food and energy prices, as they are considered to be volatile and can fluctuate frequently, causing significant changes in the overall inflation rate. By excluding these two components, the core PCE index provides a more accurate picture of underlying inflation trends.

The Core Personal Consumption Expenditures Price Index Excludes