Consider the table below.

Annual Growth (%) in CPI and CPI Groups March 2022 to March 2023 - Australia (Weighted average of eight capital cities)

All groups CPI 7.0% Health 5.3% Food and non-alcoholic beverages 8.0% Transport 4.3% Alcohol and tobacco 4.4% Communication 1.2% Clothing and footwear 3.2% Recreation and culture 8.6% Housing 9.8% Education 5.4% Furnishings, household equipment and services 6.7% Insurance and financial services 6.5%

Source: ABS (2023) Consumer Price Index, Australia - March 2023, Tables 3 & 4

a. Which goods (or CPI groups) rose faster than the All Groups CPI from March 2022 to March 2023

b. Ignoring any potential substitution, quality and new product bias in the CPI, explain whether the CPI measures the cost of living and if so for whom?

c. Given your answer in a., households with what types of spending behaviour will be experiencing an increase in their cost of living of greater than 7.0%?

d. In relation to income, assets and debts, explain who is likely to be most negatively affected by inflation and who may benefit from inflation.