Question
The following statements are extracted from the eEdition of HeraldLIVE, 20 August 2015; (http://www.heraldlive.co.za; accessed on 5/02/2016). For each statement, follow the instructions provided. 3.1
The following statements are extracted from the eEdition of HeraldLIVE, 20 August 2015; (http://www.heraldlive.co.za; accessed on 5/02/2016).
For each statement, follow the instructions provided.
3.1 "CPI inflation in July rose mainly on a 41c/L increase in the petrol price and a 12.7% increase in the electricity tariff," Investec chief economist Annabel Bishop said. Fully discuss, with the aid of a diagram, the type of inflation the above situation has created in South Africa. (15)
3.2 "Demand-led inflation is modest, reflective of weak economic growth." Interpret this statement, explaining the link between weak economic growth and modest demand-led inflation. (10)
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