If the consumer price index falls from 140 to 135 in a year, what is the deflation rate?

Name: If the consumer price index falls from 140 to 135 in a year, what is the deflation rate?
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Question

Quizplus · Accepted Answer

Deflation rate = ((CPI at end of year - CPI at beginning of year) / CPI at beginning of year) x 100%
Deflation rate = ((135-140)/140) x 100% = -3.57%
(Note: the negative sign indicates deflation, or a decrease in prices, rather than inflation, or an increase in prices)

If the Consumer Price Index Falls from 140 to 135