The consumer price index was 177.1 last year and 179.9 this year. Therefore, the current rate of inﬂation is about
A) 2.8 percent.
B) 3.4 percent.
C) 1.6 percent.
D) 4.1 percent.

Question

Quizplus · Accepted Answer

The rate of inflation is calculated as the percentage increase in the consumer price index (CPI) from one year to the next. The formula is: [(Current Year CPI - Last Year CPI) / Last Year CPI] * 100. Using the given numbers: [(179.9 - 177.1) / 177.1] * 100 = 1.6 percent.

The Consumer Price Index Was 177