Economics (AS & A Level) · May / June 2026 · Paper 11 · Question 20

The UK inflation rate as measured by the Consumer Price Index (CPI) was 5.2% in September 2011. In June 2014, the UK inflation rate as measured by the CPI was 1.6%. What can be concluded about the period September 2011 to June 2014?

1. AFixed income earners had increased purchasing power.
2. BPrices were falling.
3. CThe rate of price increases was slowing.
4. DThe real rate of interest became positive.

As printed in the paper