If 2012 is the base year, then the inflation rate for 2012 equals

Question

Quizplus · Accepted Answer

The inflation rate for a year is calculated by comparing the Consumer Price Index (CPI) of that year to the CPI of the base year (in this case, 2012), and expressing the difference as a percentage. Since the CPI of the base year is always 100 (by definition), the inflation rate for the base year is always 0%. Therefore, the correct answer is A, which is the only option that shows an inflation rate of 0%.

If 2012 Is the Base Year, Then the Inflation Rate