the table represent the consumer price index for a basket of goods and services for 3 consecutive years. calculate the inflation

Question

posledela

3 years ago

10

the table represent the consumer price index for a basket of goods and services for 3 consecutive years. calculate the inflation

rate for 2014.

Mathematics

1 answer:

just olya [345] · Answer 1 · 2022-07-25T13:48:38+03:00

We'll assume that the CPI is given for the END of the year.

Then 2014's rate is the change in price from 2013 in percent,

r = 180/125 - 1 = 36/25 - 1 = 11/25 = 44 %

Answer: choice c

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This is a pretty poor question. The questioner should clarify the exact dates of the given values of the CPI, and use the actual values. 44% is an alarming inflation rate, but fortunately a fictitious one here in the US. US inflation in 2014 was around 0.7% so the number the student was asked to compute was off by more than a factor of sixty.