If the Price Index Is P₁ in One Year and P₂

Multiple Choice

If the price index is P₁ in one year and P₂ in the next year,the inflation rate from one year to the next is calculated as

A) (P₂ - P₁) × 100.
B) (P_2/P₁) × 100.
C) (P_1/P₂) × 100.
D) [(P₂ - P₁) /P₁] × 100.
E) [(P₁ - P₂) /P₂] × 100.