Question

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 2010-2016 (%)

Answer 1

Answer: 9.31%

Step-by-step 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

=
`(240.5-218.1)/(218.1) * 100%`

=9.31%