Question

Use the information in the table below to answer:

CPI Index (Dec 2012 = 100)

Year July August September October

2014 104 106 107 110

2015 112 113 115 116

1. The monthly inflation rate for October is 0.90 %. TRUE OR FALSE?

.2. The annual inflation rate for October 2015 is 5.45 %. TRUE OR FALSE?

Answer 1

1.) $110-107 = 3$

$\frac{3}{107} ×100 = 2$ %

Therefore, it is False

2.) $116- 115 = 1$

$=\frac{ 1}{115 } × 100$ $= 0.87$ %

Therefore, it is False