Core inflation is:

  1. A. CPI headline inflation minus all non-food items
  2. B. WPI inflation minus all food and non-food items
  3. C. CPI headline inflation minus food and energy items ✓
  4. D. WPI inflation minus food and energy items

Correct Answer: C. CPI headline inflation minus food and energy items

Explanation

Core inflation is a measure of inflation that excludes certain items that face volatile price movements, notably food and energy.

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