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Discuss how inflation and deflation are measured, particularly using the Consumer Prices Index (CPI).

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Cambridge IGCSE EconomicsGovernment and the macroeconomy

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Discuss how inflation and deflation are measured, particularly using the Consumer Prices Index (CPI)

  • This point belongs to Inflation and deflation, especially Inflation and deflation outcomes.
  • You need to be able to discuss how inflation and deflation are measured, particularly using the Consumer Prices Index (CPI).
  • The key ideas to know are Explain and Discuss.
  • Use the linked flashcards and practice questions to check recall, then practise applying the idea in an exam-style answer.

Key concepts

ExplainDiscuss

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This objective helps connect Inflation and deflation outcomes to exam-style questions, flashcards, and revision notes for Inflation and deflation.

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Paper 2 structured question: Inflation and deflation

Paper 2Structured Questions1 marks

Description

Understanding CPI

The CPI measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

  1. a

    State What does CPI stand for?

    Aim for approximately 1 distinct marking point.

    [1]
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Cambridge IGCSEEconomics resources