"(c) (i) Explain whether food and drink or transport contributed more to the monthly inflation rate
in Jamaica in June 2001. [4]
(ii) Comment on the effect of the change in the price of housing and other housing expenses
on the monthly Jamaican inflation rate in June 2001"
c(i) first calculate the weighted inflation for the two groups.. this is how: (monthly inflation % value * weight)/100
e.g. for food (0.7*56)/100... divide by 100 cause the value is given in % form and then compare the two values and say which one is bigger and by approximately how much... the group with larger weighted inflation contributed more
(ii) the inflation rate for housing is negative... remember only and only a negative value represents decrease in price, positive values no matter how small indicates rise in price.... now since the rate is negative (-1.3%), price of housing fell, hence this will reduce the overall inflation rate (the overall inflation rate in a sum of weighted inflation rate of all the groups of time, hence a negative value will reduce it)
