From October 2009 to October 2010, the CPI in country A rose from 116.5 to 119.8. In country B, it rose from 97.2 to 102.3. What were the inflation rates in the two countries?

Question

Quizplus · Accepted Answer

The inflation rate is calculated as ((CPI in later year - CPI in earlier year) / CPI in earlier year) * 100. For country A: ((119.8 - 116.5) / 116.5) * 100 = 2.8%. For country B: ((102.3 - 97.2) / 97.2) * 100 = 5.2%.

From October 2009 to October 2010, the CPI in Country