Question

Compute the inflation rate for fruit prices from $2001$ to $2004$.

Short answer

$28.96\%,11.23\%,$and $6\%$are the inflation rate for fruit prices from $2001$ to $2004$.

Step-by-step solution

Step 1. Inflation Rate.

The inflation rate is an increase in the price of goods and services over time that decreases the purchasing power of money.

Step 2. Calculation.

The formula used for computing the inflation rate is the percentage change in the price index from year to year.

The inflation rate for fruit prices from $2001$to $2002$,

= (89.90 - 69.71)/69.71

=20.19/69.71

=0.2896

=28.96%

The inflation rate for fruit prices from $2002$to $2003$,

=(100-89.90)/89.90

=10.1/89.90

=0.1123

=11.23%

The inflation rate for fruit prices from $2003$to $2004$.

=(100-106)/100

=-6/100

=0.06

=6%

$28.96\%,11.23\%,$and $6\%$ are the inflation rate for fruit prices from $2001$to $2004$.