Question

Suppose the CPI increases this year from 208 to 221. What is the rate of inflation for this year? Round your answer to the nearest tenth of a percent.

Answer 1

We are to find the rate of inflation in the given question;

The formula to be used is;

Inflation rate =

`\frac{\text{CPI}_(present)-CPI_(previous)}{CPI_(previous)_{}}\text{ X 100}`
`\begin{gathered} (221-208)/(208)\text{ X }(100)/(1) \\ \\ (13)/(208)X(100)/(1) \\ \\ 6.25\text{ \%} \\ 6.3\text{ \% (nearest tenth of a percentage)} \end{gathered}`

CONCLUSION

The inflation rate of CPI that increased from 208 to 221 to the nearest tenth of a percentage is 6.3%.