Table 3 shows the actual per liter prices for unleaded petrol for June of each year between 1978 and 1986, together with the values of CPIS for those years in the US. Year Petrol price (USD/liter) CPI (1978 = 1.00) Inflation rate (%) Relative change 1978 0.663 0.652 1979 0.901 0.726 1980 1.269 0.824 1981 1.391 0.909 1982 1.309 0.965 1983 1.277 0.996 1984 1.229 1.039 1985 1.241 1.076 1986 0.955 1.136 (a) (b) Calculate the inflation rate and the change in relative price of petrol from 1979 onwards. Explain whether the changes in petrol prices are due to general inflation or to other

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Pls provide the formula of "Relative Change".

Table 3 shows the actual per liter prices for unleaded petrol for June of each year between 1978
and 1986, together with the values of CPIS for those years in the US.
Petrol price (USD/liter)
CPI (1978 = 1.00)
0.652
Relative change
Year
Inflation rate (%)
1978
0.663
1979
0.901
0.726
1980
1.269
0.824
1981
1.391
0.909
1982
1.309
1.277
0.965
1983
0.996
1984
1.229
1.039
1985
1.241
1.076
1986
0.955
1.136
(a)
(b)
Calculate the inflation rate and the change in relative price of petrol from 1979 onwards.
Explain whether the changes in petrol prices are due to general inflation or to other
factors specific to oil prices.
Transcribed Image Text:Table 3 shows the actual per liter prices for unleaded petrol for June of each year between 1978 and 1986, together with the values of CPIS for those years in the US. Petrol price (USD/liter) CPI (1978 = 1.00) 0.652 Relative change Year Inflation rate (%) 1978 0.663 1979 0.901 0.726 1980 1.269 0.824 1981 1.391 0.909 1982 1.309 1.277 0.965 1983 0.996 1984 1.229 1.039 1985 1.241 1.076 1986 0.955 1.136 (a) (b) Calculate the inflation rate and the change in relative price of petrol from 1979 onwards. Explain whether the changes in petrol prices are due to general inflation or to other factors specific to oil prices.
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