In year 1 the Consumer Price Index was 125 and 131 in the next year.What is the rate of inflation?
A)4.5
B)4.8%
C)6%
D)6.3%

Name: In year 1 the Consumer Price Index was 125 and 131 in the next year.What is the rate of inflation? A)4.5 B)4.8% C)6% D)6.3%
Brand: Quizplus
Rating: 4.8 (46 reviews)

Question

Quizplus · Accepted Answer

To find the rate of inflation, we use the formula [(CPI in Year 2 - CPI in Year 1)/CPI in Year 1] x 100%. Plugging in the values, we get [(131-125)/125] x 100% = 4.8%. Therefore, the correct answer is B.

In Year 1 the Consumer Price Index Was 125 and 131