Headline inflation reflects the overall change in the cost of living, while core inflation helps policymakers understand persistent inflationary pressures by filtering out temporary price shocks.
Consider the following statements regarding inflation : Statement (A) : Head-line inflation refers to the rate of change in the Consumer Price Index Number, a measure of the average price of a standard basket of goods and services consumed by a typical family. Statement (B) : Core inflation measures the change in average consumer prices after excluding from the Consumer Price Index certain items of volatile prices such as food and fuel. Of these statements,
Asked in RPSC RAS Prelims 2023 · Topic: Money & Banking (Inflation: Types, Causes, Effects, and Monetary Policy Responses)
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