If the Consumer Price Index rises from 300 to 333 in a particular year, the rate of inﬂation in that year is
A) 11 percent.
B) 33 percent.
C) 91 percent.
D) 10 percent.

Question

Quizplus · Accepted Answer

To calculate the rate of inflation, we use the formula: (CPI in current year - CPI in previous year)/(CPI in previous year) x 100

Using the numbers given, we get: (333-300)/300 x 100 = 11%

Therefore, the answer is choice A) 11%.

If the Consumer Price Index Rises from 300 to 333