The CPI of a given country is 110 in October. In November, the CPI rises to 120. 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. 9.1%
c. 10%
d. 11%
To calculate the rate of inflation, we can use the formula:
Rate of inflation = (CPI in November - CPI in October) / CPI in October * 100%
In this case, the CPI in October is 110 and the CPI in November is 120. Substituting these values into the formula, we get:
Rate of inflation = (120 - 110) / 110 * 100%
Rate of inflation = 10 / 110 * 100%
Rate of inflation = 9.1%
Therefore, the rate of inflation from October to November is 9.1%, so the answer is b. 9.1%.