Core inflation is a measure of:
A) inflation that excludes goods with historically volatile price changes.
B) an overall rise in prices in the economy.
C) the Consumer Price Index with durable goods excluded.
D) the change in the Consumer Price Index with durable goods excluded.

Question

Quizplus · Accepted Answer

Core inflation is a measure of inflation that excludes goods with historically volatile price changes, such as food and energy, in order to provide a better indication of underlying inflation trends in the economy. This is because changes in the prices of food and energy can be influenced by factors such as weather, geopolitical events, and supply and demand shocks, which can be temporary and not reflective of underlying inflationary pressures.

Core Inflation Is a Measure Of