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The graph shows weights of food and fuel in Consumer Price Index (CPI) in few economies. Chart 2: Weights of Food and Fuel in CPI

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The graph shows weights of food and fuel in Consumer Price Index (CPI) in few economies. Chart 2: Weights of Food and Fuel in CPI 35- 30 Pakistan 25 . That Indonesia Sri Lanka 20 Philippines Weight of fuel (Per cent) 15- South KOIng inppore 10- . Germany France China US . Canada . Japan Vietnam 5 10 15 20 25 30 35 40 45 50 Weight of food [Per cent) Source: Country-wise inflation reports. Source: Reserve Bank of India i. What does the above graph show? How is inflation in developed countries different from developing economies? (3) ii. How does India compare with other developing countries in the graph? (3) ifi. If there is a crisis in middle-east economies, inflation is likely to rise in which economies? If there is a drought, inflation is likely to rise in which economies? (2) iv. If both middle-east crisis and drought happen, which economies will be impacted? Which economies will be least impacted by the two shocks? (2)

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