Suppose that the consumer price index of a country was 160 at year X and 164 at the end of year Y.What was the country's inflation rate during year Y?
A) 5%
B) 2.5%
C) 64%
D) 164%
E) 32%

Question

Quizplus · Accepted Answer

The inflation rate can be calculated using the formula:

Inflation rate = (CPI at end of year Y - CPI at year X) / CPI at year X * 100%

Plugging in the given values:

Inflation rate = (164 - 160) / 160 * 100% = 2.5%

Therefore, the inflation rate during year Y was 2.5%.

Option B is the correct answer.

Suppose That the Consumer Price Index of a Country Was