If the consumer price index for 2010 was 160.6 and for 2011 was 163.1, what was the inflation rate between the two years? 0.25% 1.56% 2.59% 5%

The correct answer is B.

Explanation:

Giving the following information:

The consumer price index for 2010 was 160.6 and for 2011 it was 163.1.

To calculate the inflation rate we need to use the following formula:

Inflation rate = [ (PC1 - PC0) / PC0]*100

Inflation rate = [ (163.1 - 160.6) / 160.6]*100 = 1.56%