Suppose the CPI last year is 121 and the CPI this year is 137. The correct method to calculate the inflation rate is
A) 137 × 121 = 258.
B) (137 - 121)/100 = 0.16.
C) (137/121) × 100 = 113.2.
D) [(137 - 121)/121] × 100 = 13.2.

Question

Quizplus · Accepted Answer

To calculate inflation rate, we need to use the following formula:
[(Current year CPI - Last year CPI)/Last year CPI] x 100

Using this formula, we get:
[(137-121)/121] x 100 = 13.2

Therefore, the correct answer is (D).

Suppose the CPI Last Year Is 121 and the CPI