Causes and Impact of Inflation Quick Check

Question

3 of 53 of 5 Items
Question
The Consumer Price Index in 2018 was 251. In 2019, the CPI rose to 257. Calculate the inflation rate from 2018 to 2019. Round your answer to the nearest tenth of a percent.(1 point)
Responses

6%
6 percent

−2.3%
negative 2.3 percent

2.4%
2.4 percent

102.4%

Answer 1

To calculate the inflation rate from 2018 to 2019 using the Consumer Price Index (CPI), you can use the following formula:

\[ \text{Inflation Rate} = \left( \frac{\text{CPI in 2019} - \text{CPI in 2018}}{\text{CPI in 2018}} \right) \times 100 \]

Substituting the given values:

\[ \text{Inflation Rate} = \left( \frac{257 - 251}{251} \right) \times 100 \]

\[ = \left( \frac{6}{251} \right) \times 100 \]

\[ \approx 2.39% \]

Rounding this to the nearest tenth of a percent gives you 2.4%.

Therefore, the correct response is:

2.4%