if the consumer price index increases from 200 to 240 in a one-year period, then the inflation rate is
If the consumer price index increases from 200 to 240 in a one-year period, then what is the inflation rate?
Answer:
When the consumer price index (CPI) increases from 200 to 240 in a one-year period, we can calculate the inflation rate using the following formula:
Given that the initial CPI is 200 and the final CPI is 240, we can substitute these values into the formula:
Therefore, when the consumer price index increases from 200 to 240 in a one-year period, the inflation rate is 20%.