The ______ rate measures rising prices in everything except food and energy.
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. Core inflation.
- The core inflation rate represents the long-run trend in the price level. It is the price change of goods and services minus food and energy.
- However, food and energy products are too volatile to be included because they can change so quickly that they can throw off an accurate reading of underlying inflation trends.