Economics 0455 · IGCSE · Inflation and deflation

Inflation and deflation — practice question

The table contains some data from a developing country. Consumer prices: percentage change compared with the previous year 2011: 4% 2012: 5% 2013: 3% 2014: 2% Which statement has to be correct?

  • APrices fell between 2013 and 2014.
  • BThe cost of living was lowest in 2014.
  • CThe purchasing power of money rose between 2012 and 2013.
  • DThose on fixed incomes became worse off between 2011 and 2012.

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