In Year 1 the price of a barrel of oil increased from $\$ 60$ to $\$ 110$.
In Year 2 there was a further increase to $\$ 115$ a barrel.
Assume that oil price changes have an immediate impact on the general level of prices.
What will be the effect of the changes in the oil price on a country’s Consumer Price Index and on its inflation rate in Year 2 compared with Year 1?
1 )
A
2 )
B
C
4 )
D
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