ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Not seasonally adjusted CPI measures The Consumer Price Index for All Urban Consumers (CPI-U) increased 2.7 percent over the last 12 months to an index level of 215.949 (1982-84=100).

Detailed explanation-2: -The inflation rate in 2008 was 3.84%. The inflation rate in 2009 was-0.36%. The 2009 inflation rate is lower compared to the average inflation rate of 2.40% per year between 2009 and 2023.

Detailed explanation-3: -In short, a higher CPI indicates higher inflation, while a falling CPI indicates lower inflation, or even deflation.

Detailed explanation-4: -When there is an upward change in the CPI, this means there has been an increase in the average change in prices over time. This eventually leads to adjustments in the cost of living and income (presumably so that income is adjusted to meet a higher cost of living). This process is referred to as indexation.