If the consumer price index at the end of 2011 was 100 and at the end of 2012 was 120, then the rate of inflation for 2012 was
25%.
20%.
16,66%.
1,5%.
To calculate the rate of inflation, you can use the formula:
Rate of Inflation = ((CPI end - CPI start) / CPI start) x 100%
Given that CPI at the end of 2011 was 100 and at the end of 2012 was 120:
Rate of Inflation = ((120 - 100) / 100) x 100%
Rate of Inflation = (20 / 100) x 100%
Rate of Inflation = 0.2 x 100%
Rate of Inflation = 20%
Therefore, the rate of inflation for 2012 was 20%. The option that corresponds to this rate is 20%.