The table shows consumer price index data for the United States. Based on this information, what is the rate of inflation in 2008?
$$\begin{array}{l}
\text { U.S. CONSUMER PRICE INDEX }\
\begin{array} { | c | c | }
\hline \text { YEAR } & \begin{array} { c }
\text { CONSUMER } \
\text { PRICE INDEX }
\end{array} \
\hline 2005 & 195.27 \
\hline 2006 & 201.56 \
\hline 2007 & 207.34 \
\hline 2008 & 215.25 \
\hline 2009 & 214.57 \
\hline 2010 & 218.08 \
\hline
\end{array}
\end{array}$$
A)3.81%
B)3.22%
C)1.64%
D)2.87%

Question

The table shows consumer price index data for the United States. Based on this information, what is the rate of inflation in 2008?
$$\begin{array}{l}
\text { U.S. CONSUMER PRICE INDEX }\
\begin{array} { | c | c | } 
\hline \text { YEAR } & \begin{array} { c } 
\text { CONSUMER } \
\text { PRICE INDEX }
\end{array} \
\hline 2005 & 195.27 \
\hline 2006 & 201.56 \
\hline 2007 & 207.34 \
\hline 2008 & 215.25 \
\hline 2009 & 214.57 \
\hline 2010 & 218.08 \
\hline
\end{array}
\end{array}$$
A)3.81%
B)3.22%
C)1.64%
D)2.87%

Quizplus · Accepted Answer

The rate of inflation for 2008 is calculated using the Consumer Price Index (CPI) values for 2007 and 2008. The formula for the inflation rate is $\frac{(CPI_{2008} - CPI_{2007})}{CPI_{2007}} \times 100\% = \frac{(215.25 - 207.34)}{207.34} \times 100\% = 3.81\%$.

The Table Shows Consumer Price Index Data for the United