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3. Suppose that the consumer price index was 100 on January 1st, 2000 and 110 on January 1st, 2001. Determine the inflation r

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Answer #1

Consumer price index on January 1st, 2000 = 100

Consumer price index on January 1st, 2001 = 110

Calculate the inflation rate between these two dates.

Inflation Rate = (CPI in 2001 - CPI in 2000) / CPI in 2000 * 100

Inflation Rate = (110 - 100) / 100 * 100 = 10%

The rate of inflation between these two dates is 10%.

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