If the consumer price index (CPI) in 2001 was 200 and the CPI in 2002 was 215, the rate of inflation was:
A) 215 per cent.
B) 15 per cent.
C) 5 per cent.
D) 7.5 per cent.

Question

Quizplus · Accepted Answer

The rate of inflation is calculated as the percentage change in the CPI from one year to the next. In this case, the CPI increased from 200 in 2001 to 215 in 2002, an increase of 15 points. The rate of inflation is therefore 15 / 200 * 100 = 7.5%.

If the Consumer Price Index (CPI) in 2001 Was 200