When the prices of food and gasoline are added to core inflation, we get:
A) core deflation.
B) headline inflation.
C) hyperinflation.
D) adjusted inflation.

Question

Quizplus · Accepted Answer

When the prices of food and gasoline are added to core inflation, we get headline inflation. This is because core inflation only includes prices of goods and services that are considered to be more stable and less prone to frequent fluctuations, such as housing, healthcare, and education. However, food and gasoline prices are considered to be volatile and can have a large impact on overall inflation, so they are included in the headline inflation rate.

When the Prices of Food and Gasoline Are Added to Core