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Which items are not included while measuring core inflation?

A. Food items
B. Fuel Items
C. Manufactured Goods
D. Both A and B

Answer & Solution
Option: D
Explanation :Core inflation is the change in the costs of goods and services but does not include those from the food and energy sectors. This measure of inflation excludes these items because their prices are much more volatile. It is most often calculated using the consumer price index (CPI), which is a measure of prices for goods and services.
Core inflation is measured by both the CPI and the core personal consumption expenditures index (PCE). The PCE represents the prices of goods and services purchased by consumers in the U.S. Since inflation is a measure of the trend in rising prices, PCE is an important metric in determining inflation. However, core PCE and CPI are similar, and both help to determine how much inflation is in the economy.
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