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Question

What is 'Core Inflation'?

  1. Inflation in the energy sector
  2. Inflation in the food sector
  3. Overall Inflation rate
  4. Inflation excluding volatile items like food and fuel

Answer:

Option D: Inflation excluding volatile items like food and fuel

Detailed Solution:

The correct answer is “Inflation excluding volatile items like food and fuel”.

Core inflation excludes volatile items like food and fuel to provide a more stable measure of underlying inflation trends.