Compared to the inflation rate calculated using the Consumer Price Index (CPI), the core inflation rate
A) measures the prices of all products and services, not just those in the CPI basket.
B) allows quantities to change in the basket of products and services.
C) is always higher.
D) is always lower.
E) is none of the above.

Question

Quizplus · Accepted Answer

The core inflation rate excludes certain volatile categories, such as food and energy prices, from its calculation, rather than measuring all products and services or allowing quantities to change in the basket. It is not always higher or lower than the CPI inflation rate.

Compared to the Inflation Rate Calculated Using the Consumer Price