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maria [59]
3 years ago
8

Suppose the CPI has a value of 225.3 exactly one year ago, and the current value of this index is 231.16, a rise of 5.86 points.

What was the rate of inflation over the past year?
Mathematics
1 answer:
sertanlavr [38]3 years ago
4 0

Answer:

2.6%

Step-by-step explanation:

Given the current CPI = 231.56

Previous CPI (CPI a year ago) = 225.3

Rate of inflation over the past year = current CPI - previous CPI/previous CPI × 100%

Rate of inflation = 231.56-225.3/225.3 × 100%

5.86/225.3× 100%

= 2.6%

Rate of inflation over the past year will be 2.6%

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