Economics · Inflation Measurement
With reference to inflation measurement and its policy implications, consider the following statements: I. Headline inflation refers to the change in the total Consumer Price Index (CPI), capturing all items. II. Base effect refers to the impact of the corresponding period's high or low inflation levels of the previous year on the current year's inflation rates. III. In India, monetary policy decisions by the RBI's MPC are solely based on core inflation trends, completely ignoring headline CPI. How many of the above statements are correct?
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Only two
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