A pensioner's cost of living changes in line with CPI. The table shows the pensioner's annual pension and the CPI in two years.
| Year 1 | Year 2 | |
|---|---|---|
| Annual pension (£) | 18,500 | 19,240 |
| CPI | 120.0 | 127.2 |
Which statement describes the change in the real value of the annual pension from Year 1 to Year 2?
Its real value fell by approximately 6%
Its real value fell by approximately 2%
Its real value rose by approximately 4%
Its real value fell by approximately 3.2%
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.