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21 March, 22:16

If the CPI in 2015 was 114.7 and the CPI in 2016 was 124.5, then the rate of inflation between 2015 and 2016 was

A. 7.9%.

B. 8.5%.

C. 9.8%.

D. 14.7%

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Answers (1)
  1. 21 March, 22:42
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    Option (B) is correct.

    Explanation:

    Given that,

    CPI in 2015 = 114.7

    CPI in 2016 = 124.5

    The difference in the CPI from 2015 to 2016:

    = CPI in 2016 - CPI in 2015

    = 124.5 - 114.7

    = 9.8

    Inflation rate:

    = (Difference between CPI : CPI of first year) * 100

    = (9.8 : 114.7) * 100

    = 8.544%

    Hence, the rate of inflation between 2015 and 2016 was 8.5%.
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