If Year 1 Is the Base Year and Year 2

Multiple Choice

If Year 1 is the base year and Year 2 is the following year, then the inflation rate in Year 2 equals

A) [(CPI in Year 2 − CPI in Year 1) /CPI in Year 1] × 100.
B) [(CPI in Year 2 − CPI in Year 1) /CPI in Year 2] × 100.
C) [(CPI in Year 1 − CPI in Year 2) /CPI in Year 1] × 100.
D) [(CPI in Year 1 − CPI in Year 2) /CPI in Year 2] × 100.