From one year to the next, the CPI for medical care rose from 261.8 to 275.8. What was the inflation rate for medical care?

Question

Quizplus · Accepted Answer

The inflation rate for medical care can be calculated using the following formula:

Inflation rate = ((CPI in current year - CPI in previous year) / CPI in previous year) x 100

Plugging in the numbers given in the question:

Inflation rate = ((275.8 - 261.8) / 261.8) x 100
Inflation rate = (14 / 261.8) x 100
Inflation rate = 0.0535 x 100
Inflation rate = 5.35%

Therefore, the correct answer is B.

From One Year to the Next, the CPI for Medical