Sometimes when discussing inflation, we use a measure of inflation that excludes ________ from its calculation because these prices tend to be volatile.
A) commodity and energy prices
B) food and energy prices
C) housing prices
D) food and housing prices
E) energy and housing prices

Question

Quizplus · Accepted Answer

Excluding food and energy prices is a common practice when calculating inflation because these prices can be highly volatile and subject to temporary shocks. This measure is called core inflation and is considered to be a more accurate reflection of underlying inflation trends.

Sometimes When Discussing Inflation, We Use a Measure of Inflation