Kim lives in South Africa where the following Consumer Price Index CPI) levels for the entire county were recorded across two years: - January 2021 - December 2021=47.3 - January 2022-December 2022=44.5 Required: Using these figures, calculate the increase or decrease in the inflation rate across these two years to 3 decimal places. Based on calculations above, what effect might be expected on the nominal rate of interest.    Please kindly assist

ECON MACRO
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ISBN:9781337000529
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Chapter7: Unemployment And Inflation
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Kim lives in South Africa where the following Consumer Price Index CPI) levels for the entire county were recorded across two years: - January 2021 - December

2021=47.3

- January 2022-December

2022=44.5

Required: Using these figures, calculate the increase or decrease in the inflation rate across these two years to 3 decimal places. Based on calculations above, what effect might be expected on the nominal rate of interest. 

 

Please kindly assist with all relevant calculations and information

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