The table below shows the expenditure weights and price index numbers for three main categories of consumer spending in a hypothetical economy for Year 1 and Year 2. Year 1 is the base year.
| Spending Category | Weight | Year 1 Price Index | Year 2 Price Index |
|---|---|---|---|
| Food & Drink | 300 | 100 | 108 |
| Housing & Energy | 450 | 100 | 104 |
| Transport & Services | 250 | 100 | 112 |
| Total | 1000 |
Using these data, what is the rate of inflation between Year 1 and Year 2?
7.20%7.20\%7.20%
8.00%8.00\%8.00%
7.40%7.40\%7.40%
8.80%8.80\%8.80%
