Question

What is the rate of inflation for the year 2014 if the CPIs for the years 2013 and 2014 are 123 and 157 respectively?

• A. 13.43
• B. 27.64
• C. 19.87
• D. 23.06

Answer 1

The correct option is B

27.64

Given, CPI in 2013 = 123

CPI in 2014 = 157

Rate of inflation (%) = $\left[\frac{\left(\text{CPI in 2014 – CPI in 2013}\right)}{\text{CPI in 2013}}\right]\ast 100$

$=\left[\frac{(157–123)}{123}\right]\ast 100$

$=\left(\frac{34}{123}\right)\ast 100=27.64$