Question

In 2008 the price index was calculated at 165.2 with 2005 as the base year. in 2009 the price index increased to 181.6. what was the inflation from 2008-2009?

Answer 1

The inflation rate from 2008 to 2009 is 9.93%.

What is the inflation rate?

Price index is a measure of the aggregate price level in an economy. Changes in the price index measures the inflation or deflation in that economy. Inflation is when there is a persistent rise in the general price levels. When there is inflation, the price index increases from one year to the next.

Producer price index is a type of price index that aggregates the prices of the goods and services produced. The consumer price index is an aggerate of the price of a basket of good consumed. It is used to measure inflation.

Inflation : [(price index in 2009 / price index in the base year) - 1] x 100

[(181.6 / 165.2) - 1] x 100 = 9.93%

To learn more about consumer price index, please check: https://brainly.com/question/26382640

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