The sharp swing in core inflation in 2008-2009 was due to:
A) movements in energy prices.
B) the sharp decline in housing prices.
C) There was no sharp swing in core inflation.
D) rapid increases in wages.
E) rapidly rising unemployment.

Question

Quizplus · Accepted Answer

Core inflation excludes volatile items like energy and food prices, and in 2008-2009, the sharp movements in overall inflation were largely due to factors like energy prices, not core inflation, which remained relatively stable.

The Sharp Swing in Core Inflation in 2008-2009 Was Due