Q. Which of the following inflation shows price rise in all goods and services excluding “energy and food articles”?
Red Book
Red Book

[A] Galloping inflation

[B] Hyper inflation

[C] Stagflation

[D] Core inflation

Answer: D
Notes:

Explanation: Core Inflation: This nomenclature is based on the inclusion or exclusion of the goods and services while calculating inflation.

  • Popular in western economies, core inflation shows price rise in all goods and services excluding energy and food articles.
  • In India, it was first time used in the financial year 2000–01 when the government expressed that it was under control—it means the prices of manufactured goods were under control.

Source: Ramesh Singh

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