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What is the Core Rate of Inflation?

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

What inflationary measure do central banks commonly use to gauge inflation?

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1. What is the difference between the headline inflation data and core inflation data?

2. What is a major difference between the CPI and the PCE?

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About This Quiz & Worksheet

Find out how much you understand about core inflation data. Answer quiz questions on important subjects that include the way in which inflation is gauged by central banks and a comparison between core inflation data and headline inflation data.

Quiz & Worksheet Goals

With the quiz/worksheet, you'll be assessed on the following:

  • Difference between PCE and CPI
  • Increased core inflation's influence on aggregate supply
  • Something that could affect core inflation

Skills Practiced

  • Knowledge application - use your knowledge to answer questions about core inflation data
  • Making connections - use understanding of core inflation and its connection to aggregate supply
  • Distinguishing differences - compare and contrast topics from the lesson, such as headline inflation data and core inflation data
  • Information recall - access the knowledge you've gained regarding the role of central banks when it comes to measuring inflation

Additional Learning

Study more about inflation with the lesson we've prepared called 'What is the Core Rate of Inflation?' Important topics to be discussed are listed here:

  • Inflation as a key data point in analyzing economies
  • The predictions of consumer expenses and long-term trends
  • Measurements of core inflation and what that information is used for
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