Last year, the consumer price index was 115 while the consumer price index for this year is 125. The rate of inflation is
A) 8%.
B) 8.7%.
C) 9.2%.
D) 10.8%.

Name: Last year, the consumer price index was 115 while the consumer price index for this year is 125. The rate of inflation is A) 8%. B) 8.7%. C) 9.2%. D) 10.8%.
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Question

Quizplus · Accepted Answer

The rate of inflation is calculated as ((Current Year CPI - Last Year CPI) / Last Year CPI) * 100. So, ((125 - 115) / 115) * 100 = 8.7%.

Last Year, the Consumer Price Index Was 115 While the Consumer