Question

If the CPI for 2009 was 148.3 and for 2012 was 152.5, what was the inflation rate between the two years?

a) .97%
b) 2.83%
c) 4.20%
d) 9.72%

Answer 1

It's b) 2.83%

Because:

\[{152.5-148.3 \over 148.3} \times ~100 =2.83 %\]

= 2.83 %