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    Question

    Consider the following statements regarding ‘Headline

    inflation’: 1. Headline inflation is the raw inflation figure reported through the Consumer Price Index (CPI) 2. Headline inflation is not adjusted to remove highly volatile figures. 3. Consumer Price Index (CPI) is released monthly by the Bureau of Labor Statistics (BLS) Which of the statements given above is/are correct?
    A 1 only Correct Answer Incorrect Answer
    B 2 only Correct Answer Incorrect Answer
    C 2 & 3 Correct Answer Incorrect Answer
    D All Correct Answer Incorrect Answer

    Solution

    All the statements are correct. Headline inflation is the raw inflation figure reported through the Consumer Price Index (CPI) that is released monthly by the Bureau of Labor Statistics (BLS). Headline Inflation includes all aspects within an economy that experience inflation, headline inflation is not adjusted to remove highly volatile figures, including those that can shift regardless of economic conditions.

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