Final answer:
Without the specific price index numbers for 2006 and 2008, we cannot calculate the inflation rate. The correct method involves using the percentage change formula, not subtracting index numbers directly, to ensure precision in the inflation rate calculation.
Step-by-step explanation:
To calculate the inflation rate between the years 2006 and 2008, we need the price index numbers for those specific years. However, the provided information does not include these index numbers. Typically, the calculation would follow the percentage change formula as shown in the examples given, but without the specific index numbers for 2006 and 2008, we are unable to perform this calculation.
To calculate the inflation rate, you would subtract the price index of the earlier year from the price index of the later year, divide the result by the price index of the earlier year, and then multiply by 100 to get a percentage. This is a crucial concept in understanding how the general level of prices for goods and services is rising over time, impacting the purchasing power of money.
If the index numbers were provided, the formula for the calculation would be:
Inflation Rate = (Price Index in 2008 - Price Index in 2006) / Price Index in 2006 × 100
It's important to remember that we cannot simply subtract the index numbers for a shortcut, as it would not provide an accurate inflation rate, especially if precision is required down to the tenths of a percent.