Question

The table below shows the consumer price index (CPI) over several years for a country.

$\begin{array}{cc}\text{Year}& \text{CPI}\\ 2015& 94\\ 2016& 100\\ 2017& 104\\ 2018& 103\end{array}$

Which of the following conclusions can be drawn based on this data?

• A. 2015 is the base year.
• B. Prices increased over all the four years.
• C. Prices increased between 2015 and 2017, but decreased between 2017 and 2018.
• D. None of these

Answer 1

The correct option is C

Prices increased between 2015 and 2017, but decreased between 2017 and 2018.

CPI increased between 2015 and 2017, indicating that the price of a fixed basket of goods and services rose. It decreased between 2017 and 2018 indicating that the price of the basket decreased.