From 2004 to 2005,the CPI for medical care increased from 260.8 to 272.8.What was the inflation rate for medical care?

Question

Quizplus · Accepted Answer

To calculate the inflation rate, we use the formula:

Inflation rate = ((Ending CPI Value - Beginning CPI Value) / Beginning CPI Value) x 100

Plugging in the values given:

Inflation rate = ((272.8 - 260.8) / 260.8) x 100
Inflation rate = (12 / 260.8) x 100
Inflation rate = 0.046 x 100
Inflation rate = 4.6 percent

Therefore, the correct answer is D) 4.6 percent.

From 2004 to 2005,the CPI for Medical Care Increased from 260.8