Suppose that the consumer price index was 140.3 in 2012 and 144.5 in 2013.Therefore,the rate of inflation in 2013 was about:

Question

Quizplus · Accepted Answer

To find the rate of inflation between 2012 and 2013, we need to use the following formula:

Inflation rate = ((CPI in year 2 - CPI in year 1) / CPI in year 1) x 100

Plugging in the values, we get:

Inflation rate = ((144.5 - 140.3) / 140.3) x 100
Inflation rate = (4.2 / 140.3) x 100
Inflation rate = 0.03 x 100
Inflation rate = 3.0%

Therefore, the rate of inflation in 2013 was about 3.0%, which is option B.

Suppose That the Consumer Price Index Was 140