If the CPI increases from 250 to 275 for one year,the rate of inflation for that year is
A)13 percent.
B)10 percent.
C)25 percent.
D)50 percent.

Question

Quizplus · Accepted Answer

The formula for calculating inflation rate using CPI is: 
Inflation rate = ((CPI year 2 - CPI year 1) / CPI year 1) * 100%

Using the given values, 
Inflation rate = ((275-250)/250) * 100%
Inflation rate = 10%

Therefore, the correct answer is B) 10 percent.

If the CPI Increases from 250 to 275 for One