With reference to the economy, the Core inflation is considered to be a better indicator than the headline inflation because:

With reference to the economy, the Core inflation is considered to be a better indicator than the headline inflation because:
[A]Core Inflation includes certain items that are subject to sudden and short-lived price movements
[B]Core Inflation excludes certain items that are subject to sudden and short-lived price movements
[C]Core inflation has a wider basket of items
[D]Headline Inflation has a wider basket of items

Core Inflation excludes certain items that are subject to sudden and short-lived price movements
Core Inflation Core Inflation is the rate of inflation calculated to exclude certain items that are subject to sudden and short-lived price movements, mainly food and energy. Core inflation is considered a better indicator of overall long-term than un-adjusted headline inflation.

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This question "With reference to the economy, the Core inflation is considered to be a better indicator than the headline inflation because:" was published on GKToday on December 7, 2014 at 3:27 pm. For Current Affairs Questions Archive Click Here. For General Knowledge Questions Archive Click Here.

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