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Consider the following statements.
  1. Core inflation is a measure of the total inflation within an economy, including commodities such as food and energy prices.
  2. Core inflation typically rises and falls more gradually than inflation in food and fuel.
Which of the above statements is/are correct?
  • a)
    1 only 
  • b)
    2 only 
  • c)
    Both 1 and 2 
  • d)
    Neither 1 nor 2
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements. Core inflation is a measure of the ...
  • Context: In 2023, while world food prices experienced a significant decline from their 2022 highs, India saw persistently high food inflation, reaching 9.5% in December 2023. This contrasts sharply with global deflation of -10.1% during the same period.
  • Core inflation — that is the inflation rate when prices of food and fuel are taken away. Core inflation typically rises and falls more gradually than inflation in food and fuel.
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Consider the following statements. Core inflation is a measure of the total inflation within an economy, including commodities such as food and energy prices. Core inflation typically rises and falls more gradually than inflation in food and fuel.Which of the above statements is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'B'. Can you explain this answer?
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