Between October 2001 and October 2002,the CPI in Canada rose from 116.5 to 119.8.In Mexico it rose from 97.2 to 102.3.What were the inflation rates for Canada and Mexico over this one-year period?

Question

Quizplus · Accepted Answer

To calculate inflation rate, we can use the formula:
(Inflation rate) = [(CPI at the end of the period - CPI at the beginning of the period) / CPI at the beginning of the period] x 100%

For Canada:
Inflation rate = [(119.8 - 116.5) / 116.5] x 100% ≈ 2.8%

For Mexico:
Inflation rate = [(102.3 - 97.2) / 97.2] x 100% ≈ 5.2%

Therefore, the correct answer is (D) 2.8 percent for Canada and 5.2 percent for Mexico.

Between October 2001 and October 2002,the CPI in Canada Rose