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The index value for the medical care component of the CPI is currently 451 but is...

The index value for the medical care component of the CPI is currently 451 but is expected to increase next year to 480. What is the inflation rate for medical care?  Provide your answer as a percentage rounded to two decimal places. Do not include any symbols, such as "$," "=," "%," or "," in your answer.  

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Answer #1

Solution:-

Inflation rate for medical care is calculate as follows:-

Inflation Rate = {Change in CPI / Current Year CPI} * 100
= {(Next Year CPI - Current Year CPI) / Current Year CPI} * 100
= {(480 - 451) / 451} * 100
= {29 / 451} * 100
= 0.64301 * 100
= 6.43%

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