The Consumer Price Index (CPI) was 124.0 in 1989 and increased to 130.7 in 1990. What was the inflation rate during this time frame?

Explanation

To find the inflation rate, subtract the earlier CPI from the later CPI, then divide by the earlier CPI and multiply by 100: ((130.7 - 124.0) / 124.0) × 100 = 5.4%. Therefore, the inflation rate over this period is 5.4%.