Final answer:
The rise in CPI from 110 to 120 indicates an increase in the cost of living over the given period of time, suggesting inflation.
Step-by-step explanation:
The rise in Consumer Price Index (CPI) from 110 to 120 indicates an increase in the prices of goods and services over the given period of time.
This suggests that the cost of living has risen, as it now takes more money to purchase the same items as before.
The increase in CPI signifies inflation, which can have implications on the economy and people's purchasing power.