If the CPI in period 1 is 180 and the CPI in period 2 is 240, then the rate of inflation between period 1 and period 2 is
A) 25.0%.
B) 33.3%.
C) 50.0%.
D) 66.7%.

Question

Quizplus · Accepted Answer

To calculate the rate of inflation between period 1 and period 2, we need to use the following formula:

Inflation rate = ((CPI period 2 - CPI period 1) / CPI period 1) x 100

Substituting the given values, we get:

Inflation rate = ((240 - 180) / 180) x 100
Inflation rate = (60 / 180) x 100
Inflation rate = 0.333 x 100
Inflation rate = 33.3%

Therefore, the rate of inflation between period 1 and period 2 is 33.3%, which is option B.

If the CPI in Period 1 Is 180 and the CPI