If the CPI at the end of last year was 100 and the CPI at the end of this year was 115, the inflation rate was
A) 1.5 percent.
B) 15 percent.
C) 100 percent.
D) 115 percent.

Question

Quizplus · Accepted Answer

The inflation rate is calculated as the percentage change in the CPI from one period to the next. The formula is [(CPI this year - CPI last year) / CPI last year] * 100. Plugging in the numbers: [(115 - 100) / 100] * 100 = 15 percent.

If the CPI at the End of Last Year Was