A retired worker's company pension rises by 1.4% over a year. Inflation over the same year is 3.6%.
Calculate the approximate percentage change in the real value of the pension and explain what this means for what it can buy.
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.