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

Question

Quizplus · Accepted Answer

The inflation rate for a given year is calculated by taking the current year's price index minus the base year's price index, divided by the base year's price index, and multiplied by 100. Since 2012 is the base year, its price index is 100. Therefore, the inflation rate for 2012 would be (100-100)/100 * 100 = 0%. Choice A is the only option that gives a 0% inflation rate for 2012.

If 2012 Is the Base Year, Then the Inflation Rate