A country’s inflation rate, as measured using the Consumer Prices Index (CPI), stood at $3\%$ in year 1. Three years later, it had fallen to $0.8\%$. What conclusion can be drawn from this information?
- APrices are falling.
- BThe rate of price increases is falling.
- CThe real rate of interest is negative.
- DThere is increased purchasing power for those on fixed incomes.