To measure core inflation, the BLS excludes ______________ from the basket of goods used to calculate the CPI.
A) food and gasoline
B) food, clothing, and housing
C) food and housing
D) housing and gasoline

Question

Quizplus · Accepted Answer

The BLS excludes food and gasoline from the basket of goods used to calculate core inflation. This is because food and gasoline prices can be quite volatile and subject to temporary disruptions in supply, which can make them poor indicators of underlying inflationary pressures. By excluding these items, the BLS aims to provide a measure of inflation that is more stable and reflects broad-based price trends across the economy.

To Measure Core Inflation, the BLS Excludes ______________ from the Basket