The Core Inflation Rate Is

question 63

Multiple Choice

The core inflation rate is

• A) the annual percentage change in the GDP deflator.
• B) the annual percentage change in the chain price index of Household Final Consumption Expenditure.
• C) the annual percentage change in the trimmed-mean CPI.
• D) the annual percentage change in the CPI.
• E) All of the above.

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Definitions:

Seasonal Components

Patterns within time series data that occur regularly at specific intervals, such as daily, weekly, monthly, or annually, influenced by seasonal factors.

Moving Averages

A statistical method used to analyze data points by creating series of averages of different subsets of the full data set.

Exponential Smoothing

A time series forecasting method for univariate data that applies decreasing weights to past observations, with the most weight given to the latest data.

Indicator Variables

Variables used in statistical models that take the value 1 if a certain condition is met and 0 otherwise, often used for representing categorical data.