Posted: May 24th, 2016

he figures the Australian Bureau of Statistics used back then showed in the June quarter of 2006 there was a 250 per cent rise in the price of bananas due to Cyclone Larr

Read the following excerpt and explain, using economic concepts, how the impact of Cyclone Larry would cause an increase in CPI.
Yasi tipped to send banana prices soaring
“The figures the Australian Bureau of Statistics used back then showed in the June quarter of 2006 there was a 250 per cent rise in the price of bananas due to Cyclone Larry, and what they also said at the time was that [higher] fruit prices overall contributed 0.6 percentage points to inflation – and bananas were most of that,” Mr Blythe said.
Read more: http://www.smh.com.au/business/yasi-tipped-to-send-banana-pricessoaring-20110203-1aew8.html#ixzz3ybJDfCQ6
Author: Eli Greenblat; Sydney Morning Herald – February 3, 2011.