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) x 100
B) [(P₁ - P₂) /P₂] x 100
C) [(P₂ - P₁) /P₁] x 100
D) (P_2/P₁) x 100
E) (P_1/P₂) x 100