The table shows consumer price index data for the United States. Based on this information, what is the rate of inflation in 1991?
$$\begin{array}{l}
\text { U.S. CONSUMER PRICE INDEX }\
\begin{array} { | c | c | }
\hline \text { YEAR } & \begin{array} { c }
\text { CONSUMER } \
\text { PRICE INDEX }
\end{array} \
\hline 1990 & 130.66 \
\hline 1991 & 136.17 \
\hline 1992 & 140.31 \
\hline 1993 & 144.48 \
\hline 1994 & 148.23 \
\hline 1995 & 152.38 \
\hline
\end{array}
\end{array}$$
A)3.04%
B)2.79%
C)2.97%
D)4.22%

Question

The table shows consumer price index data for the United States. Based on this information, what is the rate of inflation in 1991?
$$\begin{array}{l}
\text { U.S. CONSUMER PRICE INDEX }\
\begin{array} { | c | c | } 
\hline \text { YEAR } & \begin{array} { c } 
\text { CONSUMER } \
\text { PRICE INDEX }
\end{array} \
\hline 1990 & 130.66 \
\hline 1991 & 136.17 \
\hline 1992 & 140.31 \
\hline 1993 & 144.48 \
\hline 1994 & 148.23 \
\hline 1995 & 152.38 \
\hline
\end{array}
\end{array}$$
A)3.04%
B)2.79%
C)2.97%
D)4.22%

Quizplus · Accepted Answer

The rate of inflation is calculated as $\frac{CPI_{1991} - CPI_{1990}}{CPI_{1990}} \times 100$. Substituting the given values: $\frac{136.17 - 130.66}{130.66} \times 100 = 4.22\%$.

The Table Shows Consumer Price Index Data for the United