At the end of last year, the CPI equaled 120. At the end of this year, the CPI equals 132. What is the inflation rate over this year?
A) 10 percent
B) 12 percent
C) 6 percent
D) None of the above answers are correct because more information is needed to calculate the inflation rate.

Question

Quizplus · Accepted Answer

The inflation rate is calculated as the percentage change in the CPI over a period of time. In this case, the CPI increased from 120 to 132, which is an increase of 12 points. The percentage change is calculated as (12 / 120) * 100 = 10%.

At the End of Last Year, the CPI Equaled 120