ECONOMICS
INFLATION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A Fixed income earners had increased purchasing power.
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B Prices were falling.
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C The rate of price increases was slowing.
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D The real rate of interest became positive.
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Detailed explanation-1: -How inflation is measured. Each month, the Office for National Statistics (ONS) Opens in a new window collect around 180, 000 prices of about 700 items. They use this ‘shopping basket’ to work out the Consumer Prices Index (CPI). CPI is the measure of inflation we target.
Detailed explanation-2: -The CPI inflation rate was 10.1% in January 2023, down from 10.5% in December 2022. October 2022’s figure of 11.1% was the highest rate recorded since the data series began in 1997. The ONS estimated that CPI in that month was higher than at any time since October 1981.
Detailed explanation-3: -In September 2011 the All Urban general index is established at 111.8 this stands for an increase of 0.39% over the previous month which was 111.3. In annual change it increased by 6.64% compared to 7.52% in the previous month.
Detailed explanation-4: -The average annual headline inflation rate at the national level for the year 2011 was higher at 4.8 percent compared to 3.8 percent in 2010. The index in the National Capital Region (NCR) followed the same trend as its year-on-year inflation further slowed down to 3.0 percent in December from 3.5 percent in November.