Question 20N.3.HL.TZ0.2a.iii
| Date | November 2020 | Marks available | [Maximum mark: 1] | Reference code | 20N.3.HL.TZ0.2a.iii |
| Level | HL | Paper | 3 | Time zone | TZ0 |
| Command term | Calculate | Question number | a.iii | Adapted from | N/A |
Table 1 provides information required for the calculation of a consumer price index (CPI). It shows a typical basket of goods purchased by the citizens of Country Alpha and the prices of these goods for two consecutive years. Assume 2015 is the base year, when the cost of the typical basket was $45.00.
The consumer price index for 2014 was 101.23. Calculate the rate of inflation between 2014 and 2015 (the base year).
[1]
(100 − 101.23)/101.23 × 100 = −1.22 %
NB workings are not required.
−1.22 %
An answer of −1.22 % or −1.22 or deflation of 1.22 % is sufficient for [1].
Relatively few candidates were able to calculate the rate of inflation correctly. Most students appeared to assume that 2013 was the base year - possibly because they are not used to reading tables which show deflation.
