Question

# In 2005 the price index was calculated at 115.3 with 2000 as the base year. In 2006 the price index increased to 119.5. What was the inflation from 2005-2006

Answer

3.65%

- Q:What is the formula for calculating inflation rate? A:Inflation Rate = [(End Value - Start Value) / Start Value] x 100%.
- Q:What is the end and start value for the given problem? A:Start Value = 115.3, End Value = 119.5.
- Q:What is the formula after inserting the values? A:Inflation Rate = [(119.5 - 115.3) / 115.3] x 100%.
- Q:What is the final answer? A:The inflation rate from 2005-2006 is 3.65%.