The table shows the index number for the cost of coffee, tea, and cocoa, using 2015 as base year (index = 100).
| Year | Index number | 
|---|---|
| August 2016 | 101.361 | 
| August 2018 | 106.608 | 
| August 2020 | 100.607 | 
The price of 100 grams of instant coffee in 2015 was £2.72.
Use the data in the table to estimate the cost of 100 grams of instant coffee in 2018.
A student does the following calculation to reach a conclusion about the cost of coffee, tea, and cocoa.
| Year | Index number | 
|---|---|
| August 2016 | 101.361 | 
| August 2018 | 106.608 | 
| August 2020 | 100.607 | 
| 106.608 - 101.361 = 5.247 The cost of all coffee, tea, and cocoa increased by 5.247% between August 2016 and August 2018 | 
Is the student correct?
Give two reasons for your answer.
Did this page help you?