If the CPI in 2012 is 200, and in 2013 the CPI is 180, the rate of inflation from 2012 to 2013 is ________.

Question

Quizplus · Accepted Answer

To calculate the rate of inflation, we need to subtract the CPI of 2012 from the CPI of 2013 and divide the result by the CPI of 2012.

Rate of inflation = (CPI in 2013 - CPI in 2012) / CPI in 2012
= (180 - 200) / 200
= -20 / 200
= -0.1

Therefore, the rate of inflation from 2012 to 2013 is -10% (a decrease in CPI by 10%). Option D is the correct answer which represents a decrease of 10 percent.

If the CPI in 2012 Is 200, and in 2013