87) Which of the following commodities are major contributors to core inflation in India?
i) Paan
ii) Tobacco
iii) Clothing
iv) Footwear
87) Which of the following commodities are major contributors to core inflation in India?
i) Paan
ii) Tobacco
iii) Clothing
iv) Footwear
The correct option is D d) i, ii, iii, iv
87 Ans D
Explanation: Core inflation reflects the long-term trend in a particular price level. It is a measure of inflation that excludes certain items that face volatile price movements because in finding out the legitimate long run inflation, short-term price volatility and transitory changes in price must be removed. Core inflation is most often calculated using the consumer price index (CPI), which eliminates products — usually those in the energy and food sectors — that can have temporary price shocks because these shocks can diverge from the overall trend of inflation and give a false measure of inflation.
87 Ans D
Explanation: Core inflation reflects the long-term trend in a particular price level. It is a measure of inflation that excludes certain items that face volatile price movements because in finding out the legitimate long run inflation, short-term price volatility and transitory changes in price must be removed. Core inflation is most often calculated using the consumer price index (CPI), which eliminates products — usually those in the energy and food sectors — that can have temporary price shocks because these shocks can diverge from the overall trend of inflation and give a false measure of inflation.
