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# Last year the rate of inflation was 1.2 percent, but for the

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Last year the rate of inflation was 1.2 percent, but for the [#permalink]

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20 Aug 2006, 07:05
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Last year the rate of inflation was 1.2 percent, but for 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 of 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 ten-year low.
(E) Government intervention cannot affect the rate of inflation to any significant degree.
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20 Aug 2006, 08:19
Both B and D weaken the argument, but (D) does so to a greater extent.

If last year was an anomaly, then 4% seems to be par for the course.

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20 Aug 2006, 10:57
Would pick B.

We need something to break the trend that the author bases his conclusion upon. B does this very well by saying that, dip in oil prices brought inflation temporarily below its recent stable annual level of 4 percent. In other words it says that if the dip wasn't there the inflation would have been at a stable point, that of 4%. This statement opens up the possibilities of the inflation for next year to be 4% constant, or drop or rise. Thus, there is no certainty. Hence, B weakens the argument.

I think D in one way, may support the argument.
However, i feel it does not strengthen it or weaken it.

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20 Aug 2006, 11:11
The answer is (B) its from OG i think.Thoug wud have chosen (D) too

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Director
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20 Aug 2006, 11:17
B it is....

B says that inflation is stable at 4 but for last years.

it provides alternate explaination to the suggested trend...

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20 Aug 2006, 11:19
even if D is true the increasing trend can still be valid.

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20 Aug 2006, 15:22
GMATT73 wrote:
Both B and D weaken the argument, but (D) does so to a greater extent.

If last year was an anomaly, then 4% seems to be par for the course.

This is a must B.

D may be misleading. It says that inflantion was on a downward trend until last year but its again rising and chances are there that it will increase.

But B is better. It says that it is remaining stable for a long time and it can be expected to stay stable but there are only one exception last year because of unavoidable circumstances.
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20 Aug 2006, 15:22
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# Last year the rate of inflation was 1.2 percent, but for the

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