If the CPI increases from 250 to 275 for one year,the rate of inflation for that year is
A)13 percent.
B)10 percent.
C)25 percent.
D)15 percent.

Question

Quizplus · Accepted Answer

The rate of inflation can be calculated using the following formula:

Rate of inflation = ((CPI in current year - CPI in previous year) / CPI in previous year) x 100

Plugging in the values given in the question, we get:

Rate of inflation = ((275 - 250) / 250) x 100
= 10%

Therefore, the correct answer is B) 10 percent.

If the CPI Increases from 250 to 275 for One