If you see that inflation between last year and this year is 3%, this means that:
A)the prices of each and every good and service went up by 3%.
B)economic growth is also 3%.
C)on average, prices went up across the economy by 3%.
D)the consumer price index rose by 3% more than the producer price index.

Question

Quizplus · Accepted Answer

Inflation is typically measured using the consumer price index (CPI), which tracks the prices of a basket of goods and services commonly purchased by households. If the CPI goes up by 3% from one year to the next, this means that on average, prices across the economy went up by 3%. It does not necessarily mean that the prices of every single good or service went up by exactly 3%, nor does it necessarily indicate anything about economic growth.

If You See That Inflation Between Last Year and This