Suppose that the consumer price index of a country was 160 at year-end 2007 and 168 at the end of 2008. What was the country's inflation rate during 2008?
A) 5 percent
B) 8 percent
C) 60 percent
D) 68 percent

Question

Quizplus · Accepted Answer

The inflation rate is calculated as the percentage change in the consumer price index (CPI) from one year to the next. The formula is: [(CPI in 2008 - CPI in 2007) / CPI in 2007] * 100 = [(168 - 160) / 160] * 100 = 5 percent.

Suppose That the Consumer Price Index of a Country Was