If the Consumer Price Index last year was 110 and 115 this year, the inflation rate is approximately
A) 15.0 percent.
B) 4.5 percent.
C) 5.0 percent.
D) 10.0 percent.

Question

Quizplus · Accepted Answer

The inflation rate is calculated as the percentage change in the CPI from one year to the next. In this case, the CPI increased from 110 to 115, which is a change of 5 points. The percentage change is calculated as (5 / 110) * 100 = 4.55%, which is approximately 4.5%.

If the Consumer Price Index Last Year Was 110 and 115