The core inflation index excludes volatile items such as:
AClothing and shoes
BTuition and books
CEnergy and food
DHousing and rent
Answer & Solution
Correct answer: C. Energy and food
1. They jump around with weather and events.
2. Energy and food are excluded.
3. It guides monetary policy better.
_Source: OpenStax Principles of Macroeconomics for AP Courses 2e, Chapter 8, Inflation (CC BY 4.0)._
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