If the CPI was 132.5 at the end of last year and 140.2 at the end of this year, the inflation rate over these two years was
A) 5.4 percent.
B) 5.8 percent.
C) 4.4 percent.
D) 7.7 percent.

Question

Quizplus · Accepted Answer

To calculate the inflation rate, we use the formula:

Inflation rate = ((CPI at the end of this year - CPI at the end of last year) / CPI at the end of last year) x 100

Plugging in the given values, we get:

Inflation rate = ((140.2 - 132.5) / 132.5) x 100
Inflation rate = (7.7 / 132.5) x 100
Inflation rate = 5.8 percent

Therefore, the answer is B) 5.8 percent.

If the CPI Was 132