Question

The CPI of a country in October is given to be 210. In November, the CPI rises to 220. What is the rate of inflation from October to November? Round your answer to the nearest tenth of a percent if necessary.(1 point)
Responses

4.5%
4.5 percent

10.0%
10.0 percent

4.8%
4.8 percent

1.0%

Answer 1

To calculate the rate of inflation from October to November using the Consumer Price Index (CPI), you can use the following formula:

\[
\text{Rate of Inflation} = \left( \frac{\text{CPI in November} - \text{CPI in October}}{\text{CPI in October}} \right) \times 100
\]

Plugging in the values:

- CPI in October = 210
- CPI in November = 220

\[
\text{Rate of Inflation} = \left( \frac{220 - 210}{210} \right) \times 100
\]
\[
= \left( \frac{10}{210} \right) \times 100
\]
\[
= \left( 0.047619 \right) \times 100
\]
\[
= 4.76\%
\]

Rounding to the nearest tenth of a percent:

The rate of inflation from October to November is approximately **4.8%**.