GMAT Critical Reasoning
Last year the rate of inflation was 1.2 percent, but during the current year it has been 4 percent. We can conclude that inflation is on an upward trend and the rate will be still higher next year.
Which of the following, if true, most seriously weakens the conclusion above?
- A The inflation figures were computed on the basis of a representative sample of economic data rather than all the available data.
- B Last year a dip in oil prices brought inflation temporarily below its recent stable annual level of 4 percent.
- C Increases in the pay of some workers are tied to the level of inflation, and at an inflation rate of 4 percent or above, these pay raises constitute a force causing further inflation.
- D The 1.2 percent rate of inflation last year represented a 10-year low.
- E Government intervention cannot affect the rate of inflation to any significant degree.
Correct Answer: B