Consider the following 1 Core inflation shows price rise in all goods and services in...........

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Consider the following:

1. Core inflation shows price rise in all goods and services including energy and food articles.

2. It basically measures rise or fall in prices of manufactures goods.

3. It was first time used in India in the year 2000-01

4. Western economies have no use of core inflation as food and energy aren't a problem for masses.

Choose the correct answer from the codes below

2 and 3

1,2 and 3

all of the above

2 only

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Explanation:

Core inflation measures price rise in all goods and services excluding food and fuel. Western economies give high importance to the concept of core inflation.

Core inflation, which excludes certain volatile components from the overall inflation calculation, was first introduced in India as a concept in the Annual Policy Statement of the Reserve Bank of India (RBI) in April 2002. The use of core inflation allows policymakers to focus on underlying inflation trends by excluding certain items that may experience temporary and unpredictable price fluctuations, such as food and energy.