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9 Assume the CPI increases from 123.9 to 125.6 over the period. What is the inflation...

9 Assume the CPI increases from 123.9 to 125.6 over the period. What is the inflation rate implied by this CPI change over this period?

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Answer #1

Inflation rate = (FV / PV) - 1

Inflation rate = (125.6 / 123.9) - 1

Inflation rate = 0.0137 or 1.37%

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