If the price index in 2015 is 115 and the price index in 2016 is 102, the rate of inflation between 2015 and 2016 is
A) 13.0%.
B) 12.7%.
C) -11.3%.
D) -13.0%.

Question

Quizplus · Accepted Answer

The rate of inflation is calculated as the percentage change in the price index from one year to the next. Here, it decreased from 115 to 102, which is a decrease, not an increase, indicating deflation rather than inflation. The calculation is $\frac{102 - 115}{115} \times 100 = -11.3%$.

If the Price Index in 2015 Is 115 and the Price