Exam ICWIM Topic 1 Question 58 Discussion

Actual exam question for CISI's ICWIM exam
Question #: 58
Topic #: 1
Typically, inflation is calculated by a central bank based on:

Suggested Answer: C Vote an answer

Inflation measures the rate at which the general price level of goods and services rises, reducing purchasing power.
* Why is Option C Correct?
* Inflation is measured using Consumer Price Indices (CPI), which track the cost of a fixed basket of goods and services over time.
* The basket includes food, housing, transportation, healthcare, and other essential expenses.
* Why Not Other Options?
* A (Survey of banks) # Banks may provide economic forecasts, but inflation is not calculated this way.
* B (Interest rates) # Central banks adjust interest rates in response to inflation but do not use them to calculate it.
* D (Commodities only) # Inflation measures overall price levels, not just commodities.
# Reference: UK Office for National Statistics (ONS) - Inflation Measurement, CISI Wealth & Investment Management.

by Myron at Nov 15, 2025, 02:34 PM

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