Question

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

Short answer

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

Step-by-step solution

Step 1. Meaning

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% & 6% are the inflation rate for fruit prices from 2001 to 2004.