Economics 0455 · IGCSE · Inflation and deflation

Inflation and deflation — practice question

The table gives the weights assigned to four items in a country's Consumer Prices Index for year 1 and year 2. Which conclusion can be drawn?

  • Afood prices were higher in year 2 than in year 1
  • Bpeople spent less on transport in year 2 than in year 1
  • Cpeople spent more on food in year 2 than in year 1
  • Da greater proportion of income was spent on clothing in year 2 than in year 1

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