Question
Consider the following statements in regard to Headline inflation :
Which of the statements given above is/are correct?
- It provides an accurate picture of the inflation in the country.
- It is affected by short term transitory effects on the prices of products.
Which of the statements given above is/are correct?
Answer: Option C
Answer: (c)
Headline inflation also called as WPI inflation is a measure of the total inflation within an economy and is affected by areas of the market which may experience sudden inflationary spikes such as food or energy.
As a result, headline inflation may not present an accurate picture of the current state of the economy as it doesn’t take account of the service sector.
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Answer: (c)
Headline inflation also called as WPI inflation is a measure of the total inflation within an economy and is affected by areas of the market which may experience sudden inflationary spikes such as food or energy.
As a result, headline inflation may not present an accurate picture of the current state of the economy as it doesn’t take account of the service sector.
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