If the consumer price index changes from 125 in September to 150 in October,what is the rate of inflation?
A)45.5%
B)20.0%
C)16.7%
D)9.1%

Question

Quizplus · Accepted Answer

To calculate the rate of inflation, we need to find the percentage increase in the CPI.

Percentage increase = ((New CPI - Old CPI)/Old CPI) x 100 
Percentage increase = ((150 - 125)/125) x 100 
Percentage increase = 0.2 x 100 
Percentage increase = 20%

Therefore, the rate of inflation is 20%.

If the Consumer Price Index Changes from 125 in September