Answer:
This is True because, when one calculates the rate of inflation by applying the CPI for All items, it does not really mean that all groups of services and goods have the same price rate change over the period.
Step-by-step explanation:
Solution
Given that:
The Rate of inflation = ((254.202 - 249.554) / 249.554)*100 = 1.86%.
Now,
The rate of inflation measured by the rate of change of CPI was 1.86%.
True. It is right since when one calculates a single rate of inflation using the CPI for “All items”, it does not really mean that all types of goods and services experienced the same rate of price change over the period. It is almost the average of increase in prices of “All items” in the given period.