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Question

Consider the following items:
(1) Food products
(2) Energy
Which of the items given above are mainly responsible for the Core Inflation?
  1. Only 1
  2. Only 2
  3. Both 1 and 2
  4. Neither 1 nor 2

A
Both 1 and 2
B
Only 1
C
Only 2
D
Neither 1 nor 2
Solution
Verified by Toppr

Core inflation excludes commodities which experience sudden spikes and transitory price changes. Such commodities include food and energy which are not included in the measurement of core inflation.

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