Which of the following is/are excluded from the core inflation?

Food prices

Energy prices

Exercise duties

Income tax

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Question

Core inflation is the change in the costs of goods and services but does not include those from the food and energy sectors. Food and energy prices are exempt from this calculation because their prices can be too volatile or fluctuate wildly (shows the long-term impact of inflation on the economy and on the production of goods and services). It is based on Consumer Price Index.
It includes inflation of all the goods and services. It excludes volatile food and fuel prices, exercise duties, income tax.
It helps to forecast long-term inflation trends and to forecast the appropriate monetary policy.
It can be misleading for consumers sometimes. It excludes the impact of government subsidies. It reflects the change in the prices of goods and services. It shows by how much the standard of living has weakened.

GKToday Admin · Accepted Answer

1, 2, 3 & 4

Core inflation is the change in the costs of goods and services but does not include those from the food and energy sectors. Food and energy prices are exempt from this calculation because their prices can be too volatile or fluctuate wildly (shows the long-term impact of inflation on the economy and on the production of goods and services). It is based on Consumer Price Index.
It includes inflation of all the goods and services. It excludes volatile food and fuel prices, exercise duties, income tax.
It helps to forecast long-term inflation trends and to forecast the appropriate monetary policy.
It can be misleading for consumers sometimes. It excludes the impact of government subsidies. It reflects the change in the prices of goods and services. It shows by how much the standard of living has weakened.

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