If the CPI was 122.3 at the end of last year and 124.5 at the end of this year, the inflation rate over these two years was
A) 1.8 percent.
B) 2.5 percent.
C) 22.5 percent.
D) 18.0 percent.

Question

Quizplus · Accepted Answer

The inflation rate is calculated as the percentage change in the CPI from one period to the next. The formula is: [(CPI this year - CPI last year) / CPI last year] * 100 = [(124.5 - 122.3) / 122.3] * 100 = 1.8 percent.

If the CPI Was 122