Final answer:
The annual percentage change in the price level for 2017 is calculated using price indices from the previous year and the current year into the percentage-change calculation formula. It results in an inflation rate of 2.80% when rounded to two decimal places.
Step-by-step explanation:
To calculate the annual percentage change in the price level, specifically the inflation rate for the year 2017, we use the price index numbers.
Step-by-Step Calculation
Step 1: Obtain the price index for the year 2017 and the previous year. In our case, let's say the price index has risen from 107 to 110.
Step 2: Use the general equation for percentage-change calculation:
Percentage Change = 100 x (New Value - Old Value) / Old Value
So, we apply the values to the formula:
Inflation Rate = 100 x (110 - 107) / 107
Inflation Rate = 100 x 3 / 107
Inflation Rate = 100 x 0.0280373831775701
Inflation Rate = 2.80%
Rounding to the nearest two decimal places, the inflation rate for the year 2017 is 2.80%.