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?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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