The price index was 140 in one year and 148.4 in the next year. What was...

Question

Question

The price index was 140 in one year and 148.4 in the next year. What was the inflation rate?

A) 8.4 percent B) 6.0 percent C) 2.4 percent D) 4.2 percent

Answer 1

Answer #1

Answer
Option B

Inflation rate =((CPI of the second year -CPI of the year)/CPI of the year)*100
=((148.4-140)/140)*100
=6%

The inflation is 6%

Answer 2

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