The annual average CPI for 2016 was 240.5. If the CPI for 2010 was 218.1, then what was the inflation rate for the years 2010-20

Question

katrin [286]

3 years ago

11

The annual average CPI for 2016 was 240.5. If the CPI for 2010 was 218.1, then what was the inflation rate for the years 2010-20

16 (%)

Business

1 answer:

aksik [14] · Answer 1 · 2022-03-12T17:15:49+03:00

Answer: 9.31%

Explanation:

The Consumer Price Index (CPI) is able to check the price change per year by pricing a fixed basket of goods in different years. It can be used to calculate inflation with the formula;

Inflation rate = (CPI target year - CPI base year / CPI base year) *100

= $\frac{240.5-218.1}{218.1} * 100%$

=9.31%