If the CPI at the end of 2016 was 110 and at the end of 2017 was 120, then the rate of inflation for 2017 was:
9,09%
―9,09%
10%
8,33%
8.33%
To calculate the rate of inflation, you would use the formula:
Rate of Inflation = ((CPI at end of 2017 - CPI at end of 2016) / CPI at end of 2016) x 100
Rate of Inflation = ((120 - 110) / 110) x 100
Rate of Inflation = (10 / 110) x 100
Rate of Inflation = 0.0909 x 100
Rate of Inflation = 9.09%
Therefore, the correct answer is 8.33%.