Last year, the consumer price index (CPI) was 115 while the consumer price index for this year is 125. The rate of inflation is:
A) 8.7%.
B) 8%.
C) 9.2%.
D) 10.8%.

Question

Quizplus · Accepted Answer

The rate of inflation is calculated as the percentage change in the CPI from one year to the next. In this case, the CPI increased from 115 to 125, which is an increase of 10 points. The percentage change is calculated as (10 / 115) * 100 = 8.7%.

Last Year, the Consumer Price Index (CPI) Was 115 While