If the CPI is 120 in 2005 and 150 in 2006, what is the rate of inflation over this period?

Name: If the CPI is 120 in 2005 and 150 in 2006, what is the rate of inflation over this period?
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Question

Quizplus · Accepted Answer

To calculate the rate of inflation, we use the formula:

Rate of inflation = (CPI in later year - CPI in earlier year) / (CPI in earlier year) x 100%

So, the rate of inflation over this period is:

(150 - 120) / 120 x 100% = 25%

Therefore, the answer is choice C.

If the CPI Is 120 in 2005 and 150 in 2006