If the Consumer Price Index Number for April 2015 was 120 and in April 2016, the same increased to 126,…
The percentage increase in CPI is (126−120)/120×100=5%. Six is the increase in index points, not percent; 12.6 and 10.5 do not use the previous-period base correctly. The…
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If the Consumer Price Index Number for April 2015 was 120 and in April 2016, the same increased to 126, then the percentage rate of inflation will be
Answer and explanation
Correct answer A
The percentage increase in CPI is (126−120)/120×100=5%. Six is the increase in index points, not percent; 12.6 and 10.5 do not use the previous-period base correctly. The calculation compares April with April and is a year-on-year inflation rate.
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UGC NET Economics