O Levels Economics (2281)•2281/11/M/J/25

Explanation
CPI Impact from Weighted Price Changes
Steps:
- Identify the contribution of each item to CPI as (weight × percentage price change).
- Compare these contributions across all items.
- Select the item with the highest contribution.
- Not enough information: Table of weights and price changes is missing, preventing calculation.
Why A is correct:
- Food would be correct if its weighted price change is largest, per CPI formula where index = Σ (weight_i × price change_i).
Why the others are wrong:
- B: Housing's contribution is smaller than food's weighted change.
- C: Recreation's contribution is smaller than food's weighted change.
- D: Transport's contribution is smaller than food's weighted change.
Final answer: A
Topic: Inflation and deflation
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