Question

understanding the cpi
changes in the us consumer price index 2006–2016
use the drop - down menus to complete the statements. inflation is a measure of how prices increase. disinflation occurred. the inflation rate was about in 2014. overall, prices dec
between 2008 and 2009
between 2009 and 2010
between 2013 and 2014

Explanation:

Disinflation is a decrease in the rate of inflation. We look for periods where the slope of the CPI - change curve is negative but the values are still positive. To find the inflation rate in 2014, we read the value on the y - axis corresponding to 2014 on the x - axis. To determine where prices decreased, we look for negative values on the y - axis.

1. Disinflation occurred when the rate of increase in prices slows down. Looking at the graph, disinflation occurred between 2011 - 2012 and 2012 - 2013 as the curve is going downwards during these periods while still being above 0.
2. Reading from the graph, the inflation rate in 2014 is about 1.5%.
3. Prices decreased between 2008 and 2009 as the percent - change value is negative in this period.

Answer:

1. between 2011 and 2012 and between 2012 and 2013
2. 1.5%
3. between 2008 and 2009