What is the rate of inflation of an item with a Consumer Price Index of 246.8 in 1991 and 362.4 in 1992? Round your answer to the nearest tenth.
I would appreciate any help.
To calculate the rate of inflation, you can use the following formula:
Rate of Inflation = ((CPI2 - CPI1) / CPI1) * 100
In this case, CPI1 represents the Consumer Price Index in the first year (1991) and CPI2 represents the Consumer Price Index in the second year (1992).
Let's plug in the values:
CPI1 = 246.8
CPI2 = 362.4
Rate of Inflation = ((362.4 - 246.8) / 246.8) * 100
Now, let's calculate:
Rate of Inflation = (115.6 / 246.8) * 100
Rate of Inflation = 0.468 * 100
Rate of Inflation = 46.8%
Therefore, the rate of inflation for this item between 1991 and 1992 is approximately 46.8%.