According to the Bank of Canada's website,Canada's Consumer Price Index (CPI)in August 2012 was 121.8,August 2013 was 123.1,August 2014 was 125.7 and August 2015 was 127.3.Given this set of index numbers,what is the percentage change in the average level of prices between August 2012 and August 2015?
A)127.3%
B)121.8%
C)5.5%
D)4.5%
E)27.3%

Question

Quizplus · Accepted Answer

To find the percentage change in the average level of prices, we can use the formula:

Percentage change = ((New index - Old index) / Old index) x 100

Plugging in the numbers we get:

Percentage change = ((127.3 - 121.8) / 121.8) x 100
Percentage change = (5.5 / 121.8) x 100
Percentage change = 0.045 x 100
Percentage change = 4.5%

Therefore, the best choice is D which is 4.5%.

According to the Bank of Canada's Website,Canada's Consumer Price Index