Figure 3.11 shows the relative price of energy. In this exercise, we derive the series plotted in that figure and examine recent data. First, find data on the producer price index for fuels and related products and power, and plot the growth rate in the index from one year earlier. What is the growth rate of energy prices over the most recent 12 months?

Note, however, that this series represents the inflation rate in energy prices but does not tell you how that inflation rate compares with other producer prices, so you do not know if there is an increase in energy prices relative to overall prices. To remedy that, next go back to the energy price index level (rather than the growth rate). Then find data on overall producer prices and divide the energy price series by the overall producer price series. Now find (and plot) the growth rate of this relative energy price series from one year earlier. What is the growth rate of relative energy prices over the most recent 12 months?

What do the differences in the two series you have plotted tell you about the relative price of energy? What does the difference in the two values over the most recent 12 months tell you about recent movements of energy prices compared with other producer prices?