[A] Core inflation is a measure of inflation that includes all items in the consumer price index (CPI), including those with volatile prices such as food and energy, to provide a comprehensive overview of inflationary trends.
[B] Core inflation is the change in the costs of goods and services, including seasonal elements such as food and energy, and is primarily used to assess short-term inflationary rise and guide immediate fiscal policy adjustments.
[C] Core inflation is a measure of inflation that excludes items having volatile prices, such as fuel and food, from the price index being used, to assess the underlying trend of prices and guide long-term economic strategies.
[D] Core inflation represents the immediate impact of monetary policy measures on the price level of luxury goods and services, excluding necessities, to determine the effectiveness of central bank interventions.
Notes:Explanation – Core inflation is an essential metric that policymakers use to understand the fundamental drivers of inflation by removing the effects of temporary price fluctuations. By excluding volatile items like food and energy, core inflation provides a more stable measure of inflation, helping policymakers design and implement appropriate economic strategies for sustainable growth and price stability in the long term.
Source: The Hindu
