Question 3 Norman lives in South Africa where the following Consumer Price Index (CPI) levels for the entire county were recorded across two years: July 2018 - June 2019 = 58 July 2019 - June 2020 = 42 Using these figures, calculate the increase or decrease in the inflation rate across these two years to 3 decimal places. What effect might be expected on the nominal rate of interest because of this increase or decrease? Clearly show the formula that you will use as well as your calculations