If the CPI increases from 110 to 125 for one year,the rate of inflation for that year is
A)15 percent.
B)13.6 percent.
C)1.13 percent.
D)50 percent.

Question

Quizplus · Accepted Answer

The formula for calculating inflation rate is: 
Inflation rate = ((current CPI - previous CPI) / previous CPI) * 100

So, 
Inflation rate = ((125 - 110) / 110) * 100 
Inflation rate = (15 / 110) * 100 
Inflation rate = 13.6%

Therefore, the answer is option B.

If the CPI Increases from 110 to 125 for One