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If the Consumer Price Index was 186.5 at the end of last year and 179.8 at the end of this year, the country experienced whic
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If the Consumer Price Index was 186.5 at the end of last year and 179.8 at the end of this year, the country experienced

Inflation = CPI(new) – CPI(old) / CPI(old) * 100

= [179.8 – 186.5 / 186.5]* 100

= [-6.70 / 1.8650] = -3.59%

As the inflation is negative there is deflation of 3.59% in the economy

Hence correct option: B] A deflation rate of 3.59%

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