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.
a
4.8%
b
10.0%
c
1.0%
d
4.5%
The formula for calculating inflation rate is:
[(New CPI - Old CPI) / Old CPI] x 100%
Using this formula, we get:
[(220 - 210) / 210] x 100% = (10 / 210) x 100% = 4.8%
Therefore, the answer is (a) 4.8%.
To find the rate of inflation from October to November, we need to calculate the percentage change in the CPI.
First, we need to find the difference between the November CPI and the October CPI: 220 - 210 = 10.
Next, we need to calculate the percentage change by dividing the difference by the October CPI and then multiplying by 100: (10/210) * 100 ≈ 4.8.
Therefore, the rate of inflation from October to November is approximately 4.8%, which corresponds to option a.