Use the table below to calculate the rate of inflation between 2008 and 2009.

Question

Year	Consumer Price Index
2008	150
2009	165

Inflation Rate between 2008 and 2009=

Answer 1

The consumer price index reflects the cost of a market basket of goods and services for an urban family of four. So, if the price increased from 150 to 165, the percent increase was (165/150 - 1 )*100% = 10%. That would then be the inflation rate between 2008 and 2009.