During a 3months period the price index increases from 14050

During a 3-months period, the price index increases from 140.50 to 140.90. That is, the 3-months inflation rate is?

Express your answer as a percentage; for example, 3.18% should be entered as 3.18 without the percentage sign.

Solution

Three months inflation rate = (Recent index price - Previous index price)/Previous index price

= (Recent index price - Previous index price)/Previous index price

= (140.90 - 140.50)/140.50

Three months inflation rate = 0.28 percentage