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.
(362.4-246.8)/246.8 = ?
0.468
What is 362.4
To calculate the rate of inflation, you need to use the formula:
Inflation rate = ((CPI in the current year - CPI in the previous year) / CPI in the previous year) * 100
Let's substitute the values into the formula:
Inflation rate = ((362.4 - 246.8) / 246.8) * 100
Simplifying the equation:
Inflation rate = (115.6 / 246.8) * 100
Inflation rate = 0.4677 * 100
Inflation rate ≈ 46.8%
Therefore, the rate of inflation for the item between 1991 and 1992 is approximately 46.8%.