Question

The inflation rate for a given year can be found by __________. Select the correct answer below: taking the percentage change in the Consumer Price Index (CPI) from the previous year to the given year in question calculating the absolute change in the Consumer Price Index (CPI) from the previous year to the given year in question taking the difference in the price levels as measured by the Consumer Price Index (CPI) of the two years none of the above

Answer 1

none of the above

Step-by-step explanation:

To calculate the inflation rate, the most commonly used formula is:

Consumer price index = ( CPI in given year / CPI in base year ) x 100

The base year being any particular year that the calculating authority selects, not necessarily the previous year.

Therefore, none of the answers in the question are correct.