If the CPI in 2015 was 104 and the CPI in 2016 was 106, then the rate of inflation between 2015 and 2016 was
A) 1.89%.
B) 1.92%.
C) 2.0%.
D) 2.2%.

Question

Quizplus · Accepted Answer

To calculate the rate of inflation, we need to use the following formula:
rate of inflation = ((CPI in later year - CPI in earlier year) / CPI in earlier year) x 100%

Using the formula, we get:
rate of inflation = ((106 - 104) / 104) x 100%
rate of inflation = (2 / 104) x 100%
rate of inflation = 1.92%

Therefore, the rate of inflation between 2015 and 2016 was 1.92%, which corresponds to choice B.

If the CPI in 2015 Was 104 and the CPI