If you see that the consumer price index this year is lower than the consumer price index last year, this means that:
A)the consumer price index is lower than the producer price index.
B)the prices of each and every good and service went down.
C)economic growth also decreased.
D)on average, prices went down across the economy.

Question

Quizplus · Accepted Answer

When the consumer price index is lower than the previous year, it means that, on average, prices went down across the economy. This indicates a deflationary trend in the economy. It does not necessarily mean economic growth also decreased, or that the producer price index is lower.

If You See That the Consumer Price Index This Year