Inflation rose by 5% over the second quarter, by 4% during the first quarter and higher than 3% recorded during the same time last year. However, the higher price index did not seem to alarm National stock Index as stock prices remain steady.
Which of the following, if true, could explain the reaction of National stock Index?

Inflation rose by 5% over the second quarter, by 4% during the first quarter and higher than 3% recorded during the same time last year. However, the higher price index did not seem to alarm the National stock Index as stock prices remain steady. 

Option A: The option might be true,  but cannot guarantee that National stock Index will remain steady.

Option B and C cannot explain the reaction of National stock Index, they are opposite of what the index expects.

Option D is correct, as it will confirm the inflation to be temporary because of the external factors.