2025HSCMultiple choice
Q14
1 mark
Question
The table shows selected data for a hypothetical economy.
| Year | Headline inflation (%) | Underlying inflation (%) |
|---|---|---|
| 1 | 4.5 | 3.8 |
| 2 | 5 | 3.4 |
Which row in the table shows the most likely reasons for changes in inflation rates from Year 1 to Year 2?

Syllabus alignment
Economic Issues
- Growth, employment and inflationAnalyse growth, unemployment, inflation, distribution of income and environmental sustainability.