Over one year, CPI inflation in the UK is 4%. Over the same year, household energy prices rise by 15%. The table shows the share of spending that goes on household energy in the CPI basket and for the Hughes household.
| Spending pattern | Share of spending on household energy |
|---|---|
| CPI basket | 4% |
| Hughes household | 12% |
Explain how the rise in prices experienced by the Hughes household is likely to differ from the published inflation rate.
62 exam-style questions on OCR GCSE Economics 3.4 Price stability, covering 3.4.1 Price stability and inflation, 3.4.2 Measuring inflation with CPI, 3.4.3 Calculate the effect of inflation, 3.4.4 Analyse inflation figures, and 3.4.5 Causes and consequences of inflation. Each one has a worked solution and a mark scheme showing where the marks go.