Suppose that a price index in Paraguay was 131 in 2011 and 152 in 2012. The inflation rate between those two years was approximately
A) 10.5 percent.
B) 11.6 percent.
C) 16 percent.
D) 21 percent.

Question

Quizplus · Accepted Answer

The inflation rate is calculated by taking the difference in the price index values, dividing by the initial year's index value, and then multiplying by 100 to get a percentage. So, $\frac{152 - 131}{131} \times 100 = 16\%$.

Suppose That a Price Index in Paraguay Was 131 in 2011