You are given information on the consumer price index (CPI),where the values given are those for December 31 of each year.
$$\begin{array} { c c }
\text { Year } & \text { CPI } \
\hline 1997 & 126.1 \
1998 & 133.8 \
1999 & 137.9 \
2000 & 141.9 \
2001 & 145.8
\end{array}$$
In which year was the inflation rate the highest?
A)1998
B)1999
C)2000
D)2001

Question

You are given information on the consumer price index (CPI),where the values given are those for December 31 of each year.
$$\begin{array} { c c } 
\text { Year } & \text { CPI } \
\hline 1997 & 126.1 \
1998 & 133.8 \
1999 & 137.9 \
2000 & 141.9 \
2001 & 145.8
\end{array}$$
In which year was the inflation rate the highest?
A)1998
B)1999
C)2000
D)2001

Quizplus · Accepted Answer

The inflation rate is calculated as the percentage change in CPI from one year to the next. The highest percentage increase is from 1997 to 1998: $(133.8 - 126.1) / 126.1 \times 100\% = 6.1\%$.

You Are Given Information on the Consumer Price Index (CPI),where