Suppose you are given the following annual deflator information for the US (https://fred.stlouisfed.org). Using the information from the table the rate of inflation from 2012 to 2013 was:
A) 3%
B) 2%
C) 1.9%
D) 1.7%

Question

Suppose you are given the following annual deflator information for the US (https://fred.stlouisfed.org). Using the information from the table the rate of inflation from 2012 to 2013 was: 
A) 3% 
B) 2% 
C) 1.9% 
D) 1.7%

Quizplus · Accepted Answer

To calculate the rate of inflation from 2012 to 2013, we need to divide the 2013 deflator by the 2012 deflator and subtract 1. So the calculation is (107.166/105.402)-1, which is approximately 0.019 or 1.9%. Therefore, the correct answer is C.

Suppose You Are Given the Following Annual Deflator Information for the US