Question

Between October 2014 and October 2015, the CPI in Canada rose from 120 to 124 and the CPI in Mexico rose from 210 to 229.1. What were the inflation rates for Canada and Mexico over this one-year period?

Answer 1

Answer:

Inflation rates for Canada = 3.3%

Inflation rates for Mexico = 9.1%

Explanation:

Data provided in the question:

For Canada

CPI in 2014 = 120

CPI in 2015 = 124

For Mexico

CPI in 2014 = 210

CPI in 2015 = 229.1

Now,

The inflation  = [( Current CPI - Base year CPI) ÷ Base year CPI ] × 100%

Therefore,

For Canada

Inflation = [ (124 - 120 ) ÷ 120 ] × 100%

= 3.3%

For Mexico

Inflation = [ (229.1 - 210 ) ÷ 210 ] × 100%

= 9.1%