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QUESTION:
In 1989, the CPI was 124.0. In 1990, it was 130.7. What was the rate of inflation over this period?

ANSWER:


Substituting the given values:

Inflation Rate=130.7−124.0124.0×100=6.7124.0×100≈5.4%\text{Inflation Rate} = \frac{130.7 - 124.0}{124.0} \times 100 = \frac{6.7}{124.0} \times 100 \approx 5.4\%

Posted by Cleveland on September 9, 2024
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