Question

Here are hypothetical values of the cpi (multiplied by 100) for each year from 2000 to 2010. For each year beginning with 2001, calculate the rate of inflation from the previous year?

Answer 1

To calculate the inflation rate between two years, subtract the CPI of the first year from the CPI of the second year, divide by the CPI of the first year, and multiply by 100.

Step-by-step explanation:

The inflation rate is calculated as the percentage change in the price index from year to year. For example, to calculate the inflation rate between 2001 and 2002, you would subtract the CPI for 2001 from the CPI for 2002 and divide the result by the CPI for 2001. Then, multiply the answer by 100 to get the percentage. For instance, if the CPI for 2001 is 69.71 and the CPI for 2002 is 89.90, the inflation rate would be ((89.90 - 69.71) / 69.71) * 100 = 28.96%.

You can follow the same steps to calculate the inflation rates for each year from 2001 to 2010 based on the given CPI values.

Here is a table showing the inflation rates:

| Year | CPI | Inflation Rate (%) |