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Inflation

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Question 17

The table below shows the consumer price indices and relative weights for three major categories of household expenditure in an economy for Year 1 and Year 2.

CategoryWeight (%)Year 1 Price IndexYear 2 Price Index
Housing & Utilities40110115
Transport & Fuel35120132
Food & Recreation25100104

What is the rate of consumer price inflation between Year 1 and Year 2 (to one decimal place)?

6.3%6.3\%6.3%

6.4%6.4\%6.4%

6.5%6.5\%6.5%

7.2%7.2\%7.2%

Inflation Questions

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