Many a times we read in the newspapers about a term “Core inflation”. The Core Inflation is different from the general inflation because of the following
Many a times we read in the newspapers about a term “Core inflation”. The Core Inflation is different from the general inflation because of the following Correct Answer Core inflation is the inflation rate of a particular basket of commodities.
The correct answer is Option 3.
Key Points
- Core inflation represents the long run trend in the price level. In measuring long run inflation, transitory price changes are excluded.
- It is done by excluding items frequently subject to volatile prices, like food and energy and it counts only the increment of a particular basket of commodities.
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Feb 20, 2025