Answer to Question #304515 in Macroeconomics for Gecha

Question

Calculate the rate the infilation rate of the economy if the consumer price index for 2019 is 100.

Answer 1

The inflation rate is calculated as follows;

$=\frac{(Current \space CPI\space - \space Past \space CPI)}{Past \space CPI} {\times100}$

$=\frac{100-90}{100}\times100$

$=\frac{10}{100}\times100$

$=10 \%$