Table 1 gives information about a fixed basket of goods and services. The government's inflation target is 2.0%.
| Measure | Value |
|---|---|
| Cost of the basket in the base year (price index = 100) | £320.00 |
| Price index in Period 1 | 105.0 |
| Cost of the basket in Period 2 | £347.76 |
Using Table 1, calculate the rate of inflation between Period 1 and Period 2, and how many percentage points it is above the government's target. Give your answers to one decimal place.
189 exam-style questions on AQA GCSE Economics 2.2 Government objectives, covering 2.2.1a The main economic objectives, 2.2.1b Conflicts between government objectives, 2.2.1c Other objectives and ethical considerations, 2.2.2a The significance of economic growth, 2.2.2b Causes, costs, benefits and policies for growth, 2.2.2c GDP measures and calculations, 2.2.3a Measuring employment and unemployment, 2.2.3b Types and causes of unemployment, 2.2.3c Consequences and policies for unemployment, 2.2.4a What inflation is, 2.2.4b Measuring inflation with the CPI, 2.2.4c Causes, consequences and control of inflation, 2.2.5a Balance of trade and balance of payments, 2.2.5b Current account surpluses and deficits, 2.2.5c Policies to influence the balance of payments, 2.2.6a Income and wealth inequality in the UK, 2.2.6b Causes and consequences of inequality, and 2.2.6c Redistributing income and wealth. Each one has a worked solution and a mark scheme showing where the marks go.