Question

Choose the correct statement.

A.The core inflation rate is always greater than the CPI inflation rate.
B.The inflation rate is the annual percentage change in the price level.
C.The CPI inflation rate is always greater than the core inflation rate.
D.By​ definition, the inflation rate is always positive.

Answer 1

The correct statement is B.The inflation rate is the annual percentage change in the price level.

Step-by-step explanation:

The correct statement is B.The inflation rate is the annual percentage change in the price level. The inflation rate is a measure of the rate at which the general level of prices for goods and services is rising and, consequently, purchasing power is falling. It is commonly calculated using the Consumer Price Index (CPI), which measures the price changes of a fixed basket of goods and services over time.