Question

If the CPI was 208.5 in 2009, up from 200.5 in 2008, what was the rate of inflation?

Answer 1

The rate of inflation from 2008 to 2009 was 4%.

Step-by-step explanation:

The rate of inflation can be calculated by subtracting the previous year's Consumer Price Index (CPI) from the current year's CPI, and then dividing that difference by the previous year's CPI. In this case, the rate of inflation from 2008 to 2009 can be calculated as follows:

(208.5 - 200.5) / 200.5 = 0.04 = 4%

Therefore, the rate of inflation from 2008 to 2009 was 4%.