If the CPI was 122.3 at the end of last year and 124.5 at the end of this year, the inflation rate over these two years was
A) 22.5 percent.
B) 18.0 percent.
C) 2.5 percent.
D) 1.8 percent.

Question

Quizplus · Accepted Answer

To calculate the inflation rate, we use the formula:

Inflation rate = ((CPI in current year - CPI in previous year) / CPI in previous year) x 100

Using the given data, we get:

Inflation rate = ((124.5 - 122.3) / 122.3) x 100 = 1.8%

Therefore, the inflation rate over these two years was 1.8%, which is option D.

If the CPI Was 122