Reference: Ref 12-1 (Table: Consumer Price Index) Refer to the CPI values in the table for the years 2005 to 2010. What was the approximate inflation rate over the period 2009 to 2010?
A) 3.60 percent
B) 18.10 percent
C) 21.81 percent
D) 1.68 percent

Question

Reference: Ref 12-1 (Table: Consumer Price Index) Refer to the CPI values in the table for the years 2005 to 2010. What was the approximate inflation rate over the period 2009 to 2010?
A) 3.60 percent 
B) 18.10 percent 
C) 21.81 percent 
D) 1.68 percent

Quizplus · Accepted Answer

The CPI value in 2009 was 214.537 and the CPI value in 2010 was 218.056. To calculate the inflation rate, we use the following formula: inflation rate = (CPI in later year - CPI in earlier year) / CPI in earlier year x 100%. Plugging in the values, we get (218.056 - 214.537) / 214.537 x 100% = 1.68%. Therefore, the approximate inflation rate over the period 2009 to 2010 was 1.68%.