The figures are invented. A statistics office uses these weights for household spending: food 25, housing 35, transport 15, clothing 5, other 20 (total 100). Every category's price index was 100 in year 1. In year 2 the category indices are: food 108, housing 104, transport 110, clothing 96, other 102. (i) Calculate the weighted price index for year 2. [2] (ii) Calculate the inflation rate between year 1 and year 2. [1] (iii) The simple average of the five category indices is 104. Explain why the weighted index is different. [1]

HL Paper 3-style calculation (standalone practice; not an IB question).