Economics 9708 · AS & A Level · Balance of payments

Balance of payments — practice question

The table sets out the percentage price changes for some items in the UK CPI in the year up to 1 June 2006. During the same period, the overall CPI rose by 2.5%. What can be inferred from the data shown above?

  • AThe CPI is not an accurate measure of inflation.
  • BSome prices must have fallen.
  • CThe average price increase of other items was less than 2.5%.
  • DThe real value of money rose by more than 2.5%.

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