Economics 2281 · O Level · Inflation and deflation

Inflation and deflation — practice question

The table presents the Consumer Prices Index (CPI) for the base year, 1, and the following three years. Which statement is correct?

  • AConsumer prices were highest in year 3.
  • BThe rate of inflation was $2.1\%$ in year 4.
  • CThe rate of inflation was highest in year 2.
  • DThe rate of inflation was lowest in year 1.

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