A) Inflation which excludes certain items that face volatile price movements
B) Inflation which includes certain items that face volatile price movements
C) Inflation due to rise in the production of non-agricultural products
D) Both 'a' and 'b'
Correct Answer: A
Solution :
[a] Core inflation is most often calculated by taking the Consumer Price Index (CPI) and excluding certain items from the index, usually energy and food products. Other methods of calculation include the outliers method, which removes the products that have had the largest price changes.
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