Skip to content
MathsGenie logo
Quick links
Open app

Course home

  1. A Level
  3. Economics Edexcel A
  5. Question bank

2.1.2 Inflation

EasyMediumHard
1234567891011121314151617181920212223
Question 15

An economy's inflation basket is simplified into two categories:

  • 'Housing Costs' (excluded from the Consumer Prices Index (CPI) but representing a 20% weight in the Retail Prices Index (RPI))
  • 'Other Goods and Services' (representing a 100% weight in the CPI and an 80% weight in the RPI)

In a given year, the annual price increase for 'Housing Costs' was 8.0%, and the annual price increase for 'Other Goods and Services' was 3.5%.

Based on this information, what is the percentage point difference between the RPI and CPI inflation rates?

0.90.90.9 percentage points

1.351.351.35 percentage points

3.63.63.6 percentage points

4.54.54.5 percentage points

2.1.2 Inflation Questions

  1. A Level
  2. /Economics
  3. /2.1.2 Inflation