The following table shows the value of CPI for three years in a country. Which of the following is the annual inflation rate for 2004?
A) 4%
B) 1.46%
C) 3.36%
D) 4.87%

Question

The following table shows the value of CPI for three years in a country.  Which of the following is the annual inflation rate for 2004?
A) 4% 
B) 1.46% 
C) 3.36% 
D) 4.87%

Quizplus · Accepted Answer

To find out the inflation rate for 2004, we need to calculate the percentage change in CPI from 2003 to 2004.

CPI for 2003 = 117
CPI for 2004 = 121

Percentage change in CPI = ((121-117)/117) * 100 
= 3.41%

Therefore, the annual inflation rate for 2004 is 3.41%, which is closest to option C) 3.36%.

The Following Table Shows the Value of CPI for Three