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A country's consumer price index was 124.0 at the end of year 1 and 130.7 at...

A country's consumer price index was 124.0 at the end of year 1 and 130.7 at the end of year 2. Therefore, the rate of inflation during year 2 was about:
Select one:
a. 6.7 percent
b. 5.4 percent
c. 3.2 percent
d. 13.6 percent
e. 15.4 percent
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Answer #1

Answer

Inflation rate =((CPI of the year -CPI of last year)/CPI of last year)*100

=((130.7-124)/124)*100

=5.40322581

=5.4%

the inflation rate is 5.4%

Option b

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