Why is understanding CPI biases crucial when interpreting inflation data?

• A. Because biases can lead to misinterpretation of inflation rates, affecting economic policy and decision-making.
• B. Because biases ensure that inflation rates are always understated, leading to conservative economic policies.
• C. Because biases only affect the calculation of GDP, not inflation.
• D. Because biases have no impact on the interpretation of inflation data.

Answer: (A)