Economics 0455 · IGCSE · Inflation and deflation

Inflation and deflation — practice question

The table presents the Consumer Prices Index (CPI) for an economy. What conclusion can be drawn from the data?

  • APrices fell between years 4 and 5.
  • BPrices rose in every year.
  • CThe rate of inflation rose $5\%$ in year 4.
  • DThere was a fall in living standards by year 5.

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