What is the rate of inflation over the last 12 months if the Consumer Price Index 12 months ago was 142.5 and today is 148.4?

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Multiple Choice

What is the rate of inflation over the last 12 months if the Consumer Price Index 12 months ago was 142.5 and today is 148.4?

Explanation:
Inflation over a 12-month period is the percentage change in the CPI from a year ago to today. The change in the index is 148.4 − 142.5 = 5.9. Divide by the earlier level and multiply by 100: (5.9 / 142.5) × 100 ≈ 4.14%. Rounding to one decimal place gives about 4.1%. So the year-over-year inflation rate is approximately 4.1%.

Inflation over a 12-month period is the percentage change in the CPI from a year ago to today. The change in the index is 148.4 − 142.5 = 5.9. Divide by the earlier level and multiply by 100: (5.9 / 142.5) × 100 ≈ 4.14%. Rounding to one decimal place gives about 4.1%. So the year-over-year inflation rate is approximately 4.1%.

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