A recent monthly press release on the Consumer Price Index says: "The Consumer Price Index for All Urban Consumers (CPI-U) dropped 0.1 percent in August, before seasonal adjustment, to a level of 218.8 (1982-84 = 100), the Bureau of Labor Statistics of the U.S. Department of Labor reported today."
The CPI was 208.5 in September 2007 and 218.8 in September, 2008. By what percent did the CPI increase in this 12-month period?
A) 0.05%
B) 0.49%
C) 4.9%
D) 49.4%
E) 104.9%

Question

Quizplus · Accepted Answer

To find the percent increase in CPI, use the formula:

[(final value - initial value) / initial value] x 100%

Substituting the values given:

[(218.8 - 208.5) / 208.5] x 100% = 4.93% ≈ 4.9%

Therefore, the CPI increased by approximately 4.9% in the 12-month period from September 2007 to September 2008. The answer is choice C.

A Recent Monthly Press Release on the Consumer Price Index