The change in the Consumer Price Index shows that the inflation rate for that one-year period is 20%.
What is the inflation rate?
This can be found by the formula:
= (New CPI - Old CPI) / Old CPI x 100%
Solving gives:
= (240 - 200) / 200 x 100%
= 40 / 200 x 100%
= 20%
In conclusion, inflation is 20%.
Find out more on the consumer price index at https://brainly.com/question/1889164.
