2024 · Q101
If the price index increased from 100 in 2021 to 110 in 2022 to 132 in 2023, then the rate of inflation is:
General KnowledgeIndian Economy
- A0.1
- B0.32
- C0.2
- DCannot be determined
Explanation
The inflation rate between two years is the proportional change in the price index: (132 - 110) / 110 = 22 / 110 = 0.2, i.e., 20 percent. The 2021 base of 100 is irrelevant to the 2022-2023 rate. Hence option C is correct.