Average nominal wages rise by 3%, while the CPI inflation rate is 6%. Food prices, which form a large share of spending for low-income households, rise by 9%. Analyse how the price changes may affect households' real incomes and living standards.
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.