If the CPI in 2008 was 100 and the CPI in 2006 was 115,then the inflation rate in 2006 is
A)1.5 percent.
B)100 percent.
C)11.5 percent.
D)115 percent.
E)none of the above.

Question

Quizplus · Accepted Answer

The inflation rate is calculated as the percentage change in CPI from one year to the next. Since the CPI decreased from 115 in 2006 to 100 in 2008, this indicates deflation, not inflation. Therefore, none of the given options correctly describe the inflation rate for 2006.

If the CPI in 2008 Was 100 and the CPI