If the Consumer Price Index last year was 110 and 115 this year, the inflation rate is approximately
A) 4.5 percent.
B) 5.0 percent.
C) 10.0 percent.
D) 15.0 percent.

Question

Quizplus · Accepted Answer

The inflation rate is calculated as the percentage change in the Consumer Price Index (CPI) from one period to the next. The formula is [(CPI this year - CPI last year) / CPI last year] * 100. Using the given numbers: [(115 - 110) / 110] * 100 = 4.545...%, which rounds to approximately 4.5 percent.

If the Consumer Price Index Last Year Was 110 and 115