let's say I could by a cup of coffee for 100 birr at the end of 2007
at the end of 2008 that cup would cost 141 birr
so I could only buy 100/141 or .7092 of a cup at the end of 2008
my buying power has gone down 1-.709 = .2907
or 29.1 %
because I lost 29.1 percent of my coffee.
The rate of inflation in Ethiopia was 41% in 2008. What was the percentage decrease that year in the buying power of the birr (the currency of Ethiopia)?
A. 41.0%
B. 69.5%
C. 29.1%
D. 37.5%
1 answer
1 answer