If the Consumer Price Index (CPI) in 2016 was120, then compared to the base year the inflation rate has been ____ percent.
A) 5
B) 10
C) 15
D) 20

Question

Quizplus · Accepted Answer

The Consumer Price Index (CPI) measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. The base year CPI is typically set to 100. Therefore, a CPI of 120 means that there has been a 20% increase in the level of prices compared to the base year.

If the Consumer Price Index (CPI) in 2016 Was120, Then