Introduction
Task
1. Mrs Sokhela prepares doughnuts for sale. The projected inflation rate for the year 8,1%. The old price list is given below. Prepare a new price list taking the projected inflation into account.
| Ingrediates | Old price per quality |
| Oil | R25,99/litre |
| Flour | R22,50/5kg |
| Salt | R11,00/kg |
| Milk | R9,99/400 m |
| Eggs | R30,00/2,5 dozen |
| Apricot jam | R10,99/450g |
| Yeast | R6,00/200g |
2
| Year | 2006 | 2007 | 2008 | 2009 | 2010 |
| Average rate of inflation | 5% | 6.5% | 11,3% | 7,2% | 4,5% |
| Cost of a loaf bread (R) | 4,34 | 4,56 | 4,85 | 5,40 | 5,79 |
| Cost of taxi trip to work (R) | 5,00 | 5,25 | 5,59 | 6,22 | 6,97 |
2.1 During which year was the rate of inflation the highest?
2.2 Name one thing that may have influenced the cost of a taxi trip increasing so dramatically in 2008.
2.3 Bongi looked at the table and said “If the inflation rate went down in 2010 then things would be
cheaper
in 2010 than in 2009”. Do you agree with her? Explain.
Process
Click on the link below to check on how to calculate inflation rate.
Step 1: Calculate the new price of the ingredients with the given old price and inflation rate.
Step 2: Answer the questions based on the table given.
Evaluation
| Description of competence | Marks | |
| Outstanding | 19-25 | |
| Meritorious | 15-18 | |
| Satisfactory | 9-14 | |
| Adequate | 8-0 | |
Conclusion
Learners should be able to: Investigate, through calculation and discussion, the impact of inflation on the value of an item over time
Recognize that inflation represents the average increase in the prices of a variety of goods and services over time and that different items can have different inflation rates.
Credits
1.
| Oil |
R28,10 |
| Flour | R24,32 |
| Salt | R11,89 |
| Milk | R10,80 |
| Eggs | R32,43 |
| Apricot jam | R11,88 |
| Yeast | R6,47 |
2.
2.1 2008
2.2 Petrol price increases
2.3 No – only if the inflation rate was negative