With reference to the economy, the Core inflation is considered to be a better indicator than the headline inflation because:
With reference to the economy, the Core inflation is considered to be a better indicator than the headline inflation because:
[A]Core Inflation includes certain items that are subject to sudden and short-lived price movements
[B]Core Inflation excludes certain items that are subject to sudden and short-lived price movements
[C]Core inflation has a wider basket of items
[D]Headline Inflation has a wider basket of items
Core Inflation excludes certain items that are subject to sudden and short-lived price movements
Core Inflation Core Inflation is the rate of inflation calculated to exclude certain items that are subject to sudden and short-lived price movements, mainly food and energy. Core inflation is considered a better indicator of overall long-term than un-adjusted headline inflation.