The Consumer Price Index (CPI) in January 2017 was 244.02 and the CPI in January 2018 was 249.24. Therefore, the rate of inflation between January 2017-January 2018 was _____ percent.
A) 5.22
B) 2.14
C) 6.31
D) 4.86

Question

Quizplus · Accepted Answer

The rate of inflation is calculated by taking the difference in CPI values between two periods, dividing by the earlier period's CPI, and then multiplying by 100 to get a percentage. So, $\frac{249.24 - 244.02}{244.02} \times 100 = 2.14$ percent.

The Consumer Price Index (CPI) in January 2017 Was 244