7. The following table lists the per-litre prices for unleaded regular petrol for June of each year between 1978 and 1986, together with the values of the CPIs for those years. For each year from 1979 to 1986, find the CPI inflation rate and the change in the real price of petrol, both from the previous year. Would it be fair to say that most of the changes in petrol prices during this period were due to general inflation, or were factors specific to the oil market playing a role as well? LO 3.1 LO 3.4 MEDIUM

YEAR PETROL PRICE ($/LITRE) CPI (1982–84 = 1.00) 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