If the CPI was 121.5 at the end of last year and 138.3 at the end of this year, the inflation rate over these two years was
A) 10.2 percent.
B) 12.2 percent.
C) 16.8 percent.
D) 13.8 percent.

Question

Quizplus · Accepted Answer

The inflation rate can be calculated using this formula: ((CPI in this year - CPI in last year) / CPI in last year) x 100%
Plugging in the values, we get ((138.3 - 121.5)/121.5) x 100% = 13.8%
Therefore, the correct choice is (D) 13.8 percent.

If the CPI Was 121