Table 20-5

-Refer to Table 20-5. Consider the following values of the consumer price index for 2012 and 2013. The inflation rate for 2013 was equal to
A) 215 percent.
B) 21.5 percent.
C) 8.0 percent.
D) 3.9 percent.

Question

Table 20-5
 
-Refer to Table 20-5. Consider the following values of the consumer price index for 2012 and 2013. The inflation rate for 2013 was equal to
A) 215 percent. 
B) 21.5 percent. 
C) 8.0 percent. 
D) 3.9 percent.

Quizplus · Accepted Answer

To calculate inflation rate we use the formula: 
inflation rate = (CPI in year 2 - CPI in year 1)/ CPI in year 1 x 100%
Using the values from the table, we get:
inflation rate for 2013 = (218.1-209.8)/209.8 x 100% = 3.93%
Therefore, the answer is D.

Table 20-5 -Refer to Table 20-5. Consider the Following Values of the Following