A Level Economics (9708)•9708/11/M/J/21

Explanation
Disinflation vs. Deflation in CPI Changes
Steps:
- Calculate annual inflation rate: ((Current CPI - Previous CPI) / Previous CPI) × 100%.
- Deflation occurs if rate < 0% (prices fall).
- Disinflation occurs if rate > 0% but lower than prior year's rate (slowing positive inflation).
- Data only provided up to 2017; 2018–2019 values missing, preventing full analysis.
Why D is correct:
- Not enough information: 2019 CPI unavailable to verify positive but slowing inflation vs. 2018.
Why the others are wrong:
- A: 2016 rate = -2% (deflation, not disinflation).
- B: 2017 rate ≈ +3.1% (shift from deflation to inflation, not disinflation).
- C: 2018 CPI missing (cannot assess).
Final answer: Not enough information.
Topic: Price stability
Practice more A Level Economics (9708) questions on mMCQ.me