Suppose that the data in the following table reflects the prices in the economy.What is the inflation rate in between 2017 and 2018? $$\begin{array} { | c | c | }
\hline \text { Year } & \text { CPI } \
& ( \mathbf { 1 9 9 0 } = \mathbf { 1 0 0 } ) \
\hline 2017 & 175 \
\hline 2018 & 180 \
\hline
\end{array}$$

Question

Suppose that the data in the following table reflects the prices in the economy.What is the inflation rate in between 2017 and 2018? $$\begin{array} { | c | c | } 
\hline \text { Year } & \text { CPI } \
& ( \mathbf { 1 9 9 0 } = \mathbf { 1 0 0 } ) \
\hline 2017 & 175 \
\hline 2018 & 180 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The inflation rate is calculated as the percentage change in the CPI from one year to the next. In this case, the CPI increased from 175 in 2017 to 180 in 2018, an increase of 5 points. The percentage change is calculated as (5/175) * 100 = 2.9%.

Suppose That the Data in the Following Table Reflects the Prices