If the consumer price index (CPI) in Year 1 was 200 and the CPI in Year 2 was 215, the rate of inflation was:
A) 215 percent.
B) 15 percent.
C) 5 percent.
D) 7.5 percent.
E) 8 percent.

Question

Quizplus · Accepted Answer

The rate of inflation is calculated as the percentage change in the CPI from one year to the next. In this case, the CPI increased from 200 to 215, a change of 15 points. The rate of inflation is therefore 15 / 200 * 100 = 7.5%.

If the Consumer Price Index (CPI) in Year 1 Was