If the Consumer Price Index rose from 170 8 in 1985 to 301 9

If the Consumer Price Index rose from 170 8 in 1985 to 301 9 in 2010, wht would be the inflation rate over this period 2)

Solution

Price Index in 1985 =170.80.

Price index in 2010 = 301.90

Change in price level index: 301.90 -170.80 =131.10

Inflation rate: (Change in Price level/ Price index of 1985 *100) = 76.76%