As part of the monetary policy committee's assessment of inflationary pressures, trends in individual consumer price index (CPI) components have become critical indicators. Price volatility in essential goods, as outlined in Fig. 1.1, has disproportionately impacted households depending on their consumption baskets. Average weekly spend on essential transport and energy remains a major factor in regional cost-of-living variances.
Fig. 1.1: Average Weekly Household Spend (£s) on selected categories in 2023
Disruptions in global supply chains and commodity markets have led to divergent price trends across key consumption indices, as shown in Fig. 1.2. This has raised concerns about structural inflation persistent in specific components of the basket.
Fig. 1.2: Consumer Price Index (CPI) components 2010–2023 (base year = 2010)
Using the data in Fig. 1.2, calculate the difference in the percentage rate of growth in consumer prices between the Energy & Utilities category and the Food & Non-alcoholic Beverages category between 2016 and 2023. Give your answer to two decimal places.
43 exam-style questions on OCR A Level Economics Trends in macroeconomic indicators. Each one has a worked solution and a mark scheme showing where the marks go.