According to the link below, which component of Canada's CPI had the lowest rate of inflation in the period shown? What is the right answer for question 5: http://postimage.org/image/nwb6cv2ef/

Expert Answers

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When we follow the instructions in the link below, we get to this page.  There, we can see the changes in price level for various components of the CPI.  The top table shows us the actual price level while the bottom chart shows us the percent change in that price level from the previous year.  A slower rate of inflation is shown by smaller numbers in the bottom chart.    It can also be seen in the difference between the last year (2011) and the first year (2007) in the top chart.

From these data, we can clearly see that clothing and footwear had the lowest rate of inflation.  In fact, the price level for clothing and footwear is actually lower in 2011 (91.9) than it was in 2007 (95.7).  This is the only component that actually saw a drop in price level.

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