A country's Consumer Price Index was 129 for Year 1 and 133 for Year 2.The inflation rate of the country between the two years was approximately ________.
A) 3.1 percent
B) 4 percent
C) 2.2 percent
D) 6 percent

Question

Quizplus · Accepted Answer

The inflation rate is calculated as the percentage change in the Consumer Price Index (CPI) from one year to the next. The formula is: [(CPI in Year 2 - CPI in Year 1) / CPI in Year 1] * 100. Using the given CPI values, the calculation is: [(133 - 129) / 129] * 100 = (4 / 129) * 100 ≈ 3.1 percent.

A Country's Consumer Price Index Was 129 for Year 1