Question on: JAMB Economics - 2003
If Nigeria's composite price index in 1999 was 140.03% in 2000, the rate of inflation in 2000 was
A
4.02%
B
2.10%
C
2.06%
D
1.03%
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Correct Option: D
Here's how to calculate the inflation rate:
1. **Understand the Price Index:** The composite price index represents the average price level of goods and services in an economy.
2. **Calculate the Inflation Rate:** The inflation rate is the percentage change in the price index over a period. The formula is:
Inflation Rate = \[ (Price Index in Current Year - Price Index in Previous Year) / Price Index in Previous Year ] \* 100
3. **Apply the Formula:** In this case:
* Price Index in 1999 (Previous Year) = 100% (This is the base year, though it's not explicitly stated, it's implied).
* Price Index in 2000 (Current Year)
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