What will be the Rate of Inflation? If

If the Price Index for the Year 2002 was 120 and for the Year 2003, it is 130. the Rate of Inflation would be:

  1. 7.96%
  2. 10%
  3. 8.3%
  4. 13%
Tahir Lecturer Asked on 17th September 2015 in Economics.
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  • 1 Answer(s)

    8.3% 

    If the Price Index for the year 2002 was 120 and for the year 2003, it is 130. The Rate of Inflation would be 8.3%.

    Working Note:-

    ((Current year – Previous Year)/Previous Year)*100

    =((130-120)/120)*100
    =(10/120)*100
    =0.83*100
    =8.3%

    Monis Rasool Professor Answered on 19th September 2015.
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