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Calculate the current inflation rate given the following:

Current year CPI = 120
Previous year CPI = 105

1 answer

Inflation Rate = ((Current year CPI - Previous year CPI) / Previous year CPI) * 100 = ((120 - 105) / 105) * 100
Inflation Rate = (15 / 105) * 100 = 0.1429 * 100 = 14.29%

Therefore, the current inflation rate is 14.29%.