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CPI/Inflation Question

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1. Suppose the price index was 100 in 2014, 109 in 2015, and the inflation rate was lower between 2015 and 2016 than it was between 2014 and 2015. This means that:

a) the price index in 2016 must be lower than 109.0
b) the price index in 2016 must be lower than 118.0
c) the price index in 2016 must be lower than 118.9
d) the inflation rate between 2015 and 2016 was lower than 1.09%

The answer is C, why?
2. erm, i do econ, but have no idea how to help, errr, TheALevelStudent can you explain this please?!
3. (Original post by nd_31)
Suppose the price index was 100 in 2014, 109 in 2015, and the inflation rate was lower between 2015 and 2016 than it was between 2014 and 2015. This means that:

a) the price index in 2016 must be lower than 109.0
b) the price index in 2016 must be lower than 118.0
c) the price index in 2016 must be lower than 118.9
d) the inflation rate between 2015 and 2016 was lower than 1.09%

The answer is C, why?
(Original post by CleverSquirrel)
erm, i do econ, but have no idea how to help, errr, TheALevelStudent can you explain this please?!
This question if fundamentally a maths question based on economic theory. I have done my best to explain it, but if you are still unsure please ask.

Excuse my messy handwriting - I'm a boy
4. (Original post by TheALevelStudent)
This question if fundamentally a maths question based on economic theory. I have done my best to explain it, but if you are still unsure please ask.

Excuse my messy handwriting - I'm a boy
100 to 109.

0.09% increase.

5. (Original post by TheALevelStudent)
This question if fundamentally a maths question based on economic theory. I have done my best to explain it, but if you are still unsure please ask.

Excuse my messy handwriting - I'm a boy
awesome!!! thaaannnnkk ju very much!!!!

your writing is actually neater than mine....and i'm a girl
6. (Original post by Speckle)
100 to 109.

0.09% increase.

I don't understand what you are trying to say?

(Original post by CleverSquirrel)
awesome!!! thaaannnnkk ju very much!!!!

your writing is actually neater than mine....and i'm a girl
Lmao, every girl I know has flawless handwriting - and they all say its bad loool
7. (Original post by TheALevelStudent)
This question if fundamentally a maths question based on economic theory. I have done my best to explain it, but if you are still unsure please ask.

Excuse my messy handwriting - I'm a boy
Thank you!!!
8. (Original post by TheALevelStudent)
I don't understand what you are trying to say?

Should be 9% bro.
9. (Original post by Speckle)
Should be 9% bro.
In terms of inflation it is 0.09%

Inflation is calculated by the new value - the old value / the old value.
(109-100)/100 = 9/100 = 0.09%

I understand what you are trying to say but I got the answer right so...
10. (Original post by TheALevelStudent)
In terms of inflation it is 0.09%

Inflation is calculated by the new value - the old value / the old value.
(109-100)/100 = 9/100 = 0.09%

I understand what you are trying to say but I got the answer right so...
Your handwriting is perfect!
Omg
I love the way you write numbers
lol

Plus that's pretty nice handwriting for a boy
11. (Original post by AppleB)
Your handwriting is perfect!
Omg
I love the way you write numbers
lol

Plus that's pretty nice handwriting for a boy
aww thanks apple
12. (Original post by TheALevelStudent)
In terms of inflation it is 0.09%

Inflation is calculated by the new value - the old value / the old value.
(109-100)/100 = 9/100 = 0.09%

I understand what you are trying to say but I got the answer right so...
9/100 does not equal 0.09/100...
13. (Original post by Armpits)
9/100 does not equal 0.09/100...
The value of the inflation is 0.09, whether inflation is measured as a percentage or something else i do not know. But in terms of working that is the correct way to get the right answer
14. (Original post by TheALevelStudent)
aww thanks apple

15. (Original post by TheALevelStudent)
The value of the inflation is 0.09, whether inflation is measured as a percentage or something else i do not know. But in terms of working that is the correct way to get the right answer
0.09 = 9%

Working seems fine provided you just stuck the % sign superfluously.
16. nucdev

Where have i gone wrong? My method seems logical and i get the right answer, however i understand what the other users are saying and their points are completely valid
17. (Original post by Armpits)
0.09 = 9%

Working seems fine provided you just stuck the % sign superfluously.
I think that is it lol, thank you
18. (Original post by TheALevelStudent)
nucdev

Where have i gone wrong? My method seems logical and i get the right answer, however i understand what the other users are saying and their points are completely valid
You're working out is fine - it's just that you wrote (109-100)/100 = 0.09%
It should just be 0.09. The sign is unnecessary (in fact it's wrong lol)

0.09 is the same as 9%
19. (Original post by nucdev)
You're working out is fine - it's just that you wrote (109-100)/100 = 0.09%
It should just be 0.09. The sign is unnecessary (in fact it's wrong lol)

0.09 is the same as 9%
Yeah i realised lmao, silly me
20. (Original post by TheALevelStudent)
Yeah i realised lmao, silly me

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