Final answer:
High CPI benefits debtors by allowing them to repay debts with less valuable money, while increasing the repo rate makes borrowing more costly for consumers.
Explanation:
High CPI benefits debtors as they can repay their debts with cheaper dollars due to inflation devaluing the currency. Debtors effectively pay back their loans with money that is worth less than when they borrowed it. On the other hand, increases in the repo rate make borrowing more expensive for consumers as it raises the cost of taking out loans, including mortgages and other forms of credit.
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