The Price Index in 2011 Is 120, and in 2012

question 51

Multiple Choice

The price index in 2011 is 120, and in 2012 the price index is 126. What is the inflation rate?

• A) 5 per cent
• B) 6 per cent
• C) 26 per cent
• D) The inflation rate is impossible to determine without knowing the base year

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