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

Question

Quizplus · Accepted Answer

The measure of inflation that excludes food and energy prices from its calculation is called "core" inflation. This is because food and energy prices tend to be more volatile and can fluctuate greatly due to factors like weather and geopolitical tensions. Therefore, excluding food and energy prices can help provide a more stable and accurate picture of overall inflation trends.

Sometimes When Discussing Inflation, We Use a Measure of Inflation