This table shows the values of the Canadian consumer price index (CPI)for the years 1998 - 2005.

-Using the data in the table above,the rate of inflation between 2003 and 2004 was
A) 0.96%.
B) 1.85%.
C) 2.85%.
D) 1.21%.
E) 1.81%.

Question

This table shows the values of the Canadian consumer price index (CPI)for the years 1998 - 2005.
 
-Using the data in the table above,the rate of inflation between 2003 and 2004 was
A) 0.96%. 
B) 1.85%. 
C) 2.85%. 
D) 1.21%. 
E) 1.81%.

Quizplus · Accepted Answer

In order to calculate the rate of inflation between 2003 and 2004, we need to find the percentage change in the CPI from 2003 to 2004.

CPI in 2003 = 107.1  
CPI in 2004 = 109.0

To find the percentage change:

((New Value - Old Value) / Old Value) x 100%

((109.0 - 107.1) / 107.1) x 100% = 1.78%

Therefore, the rate of inflation between 2003 and 2004 was approximately 1.78% or 1.85% rounded to the nearest hundredth.

The best choice is B) 1.85%.

This Table Shows the Values of the Canadian Consumer Price