Q. Which of the following would be included in the calculation of core inflation?
Answer: C
Notes:
Explanation:
- Core inflation measures the change in the costs of goods and services, but it excludes volatile items that are subject to frequent price swings, most notably food and energy prices.
- Items like fruits, vegetables, crude oil, and gasoline are excluded because their prices can fluctuate wildly due to seasonal factors, geopolitical events, or supply shocks, which can give a misleading picture of underlying inflationary trends.
- The price of medical services is considered a more stable component of the overall price index and is therefore included in the calculation of core inflation.

