Explanation:

- The correct answer is Option 2: Core inflation.

- Core inflation measures the changes in the cost of goods and services but excludes food and energy. These categories can be volatile, so core inflation gives a clearer picture of long-term trends.

- Option 1: Wage inflation

- Wage inflation refers to the rise in wages over time. It impacts costs for employers and purchasing power of individuals.

- Option 3: Stagflation

- Stagflation occurs when an economy experiences stagnant growth, high unemployment, and high inflation simultaneously. It’s a challenging economic situation.

- Option 4: Deflation

- Deflation is a decrease in the general price level of goods and services. It can lead to reduced consumer spending, further slowing economic growth.