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 and that their Consumer Price Index weightings remains unchanged.
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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