Exhibit 22-3

-According to the data in Exhibit 22-3, the rate of inflation between 2013 and 2014 was
A)4.3 percent.
B)2.2 percent.
C)1.1 percent.
D)0 percent.
E)-3.1 percent.

Question

Exhibit 22-3
 
-According to the data in Exhibit 22-3, the rate of inflation between 2013 and 2014 was
A)4.3 percent. 
B)2.2 percent. 
C)1.1 percent. 
D)0 percent. 
E)-3.1 percent.

Quizplus · Accepted Answer

The inflation rate is the percentage change in the CPI (Consumer Price Index) from one year to the next year. In this case, the CPI in 2013 was 190.5 and in 2014 it was 194.7. Using the formula [(new value - old value)/old value] x 100, we get:
[(194.7-190.5)/190.5] x 100 = 2.2%
Therefore, the rate of inflation between 2013 and 2014 was 2.2 percent, which corresponds to choice B.

Exhibit 22-3 -According to the Data in Exhibit 22-3, the Rate of 22-3