consumer price index\nyear xxx1 xxx2\nhousing 1430 1550\nfood 380 440\ntransportation 380 400\nmedical 500…

consumer price index\nyear xxx1 xxx2\nhousing 1430 1550\nfood 380 440\ntransportation 380 400\nmedical 500 540\neducation 450 530\napparel 220 240\nrecreation 200 200\nother 290 300\ncalculate the inflation rate from year 1 to year 2 using the consumer price index.\n?%\nround to the nearest tenth of a percent.

consumer price index\nyear xxx1 xxx2\nhousing 1430 1550\nfood 380 440\ntransportation 380 400\nmedical 500 540\neducation 450 530\napparel 220 240\nrecreation 200 200\nother 290 300\ncalculate the inflation rate from year 1 to year 2 using the consumer price index.\n?%\nround to the nearest tenth of a percent.

Answer

Explanation:

Step1: Calculate total CPI for year 1

$1430 + 380+380 + 500+450+220+200+290=3850$

Step2: Calculate total CPI for year 2

$1550 + 440+400 + 540+530+240+200+300=4200$

Step3: Calculate inflation rate

The formula for inflation rate is $\text{Inflation Rate}=\frac{\text{CPI}{2}-\text{CPI}{1}}{\text{CPI}{1}}\times 100%$. Substitute $\text{CPI}{1} = 3850$ and $\text{CPI}_{2}=4200$ into the formula: $\frac{4200 - 3850}{3850}\times100%=\frac{350}{3850}\times 100%\approx 9.1%$

Answer:

$9.1$