Economics · Economy
Which of the following components generally plays the most significant role in driving down retail inflation (CPI) during periods of sharp multi-month declines?
- 1A comprehensive rise in manufacturing tariffs
- 2A substantial moderation in food and energy costs✓
- 3An increase in the pricing of real estate and housing
- 4A sharp increase in domestic fuel prices
Correct answer
A substantial moderation in food and energy costs
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