Question

If the consumer price index rises from 300 to 333 in a particular year, what is the rate of inflation in that year?

1) 11 percent
2) 33 percent
3) 91 percent
4) 10 percent

Answer 1

The rate of inflation in that year is 11 percent.

Step-by-step explanation:

The rate of inflation can be calculated by finding the percentage change in the consumer price index (CPI). In this case, the CPI rose from 300 to 333. To find the rate of inflation, we subtract the initial CPI from the final CPI and divide it by the initial CPI, then multiply by 100.

(333 - 300) / 300 * 100 = 33 / 300 * 100 = 11%

Therefore, the rate of inflation in that year is 11 percent.