Question

4. The percentage decrease in the Consumer Price Index (CPI) in Hong Kong from year 2017 to
year 2019 is -6.9%. Taking year 2017 as the base period, the CPI of year 2019 is:

A 93.1.
B. 100.0
C. 103.1
D. 106.9.

Answer 1

Answer:

D. 106.9%

Step-by-step explanation:

The Consumer Price Index in 2017 will be 100% as it is the base year. As the percentage decrease in Consumer Price Index is negative, it means there is an increase in the CPI by 6.9% in 2019 from the base year (2017). Thus, CPI in 2019 will be 106.9%.

However, the answer would be 93.1% if the percentage decrease was 6.9% instead of -6.9%.