The Consumer Price Index (CPI) was 150.3 in the year 1995 and 190.7 in  2005. Calculate the rate of inflation to the nearest hundredth of a percent. 

The formula to calculate the rate of inflation between two years is:

\[
\text{Inflation Rate} = \left( \frac{\text{CPI in Final Year} - \text{CPI in Initial Year}}{\text{CPI in Initial Year}} \right) \times 100
\]

Using the given values:

- CPI in 2005 (Final Year) = 190.7
- CPI in 1995 (Initial Year) = 150.3

Substituting into the formula:

\[
\text{Inflation Rate} = \left( \frac{190.7 - 150.3}{150.3} \right) \times 100
\]

Let's calculate that.The rate of inflation from 1995 to 2005 is approximately **26.88%**.

Would you like more details on the calculation or have any questions?

Here are 5 related questions for further exploration:
1. How does inflation impact purchasing power over time?
2. What is the difference between nominal and real inflation rates?
3. How is CPI calculated for a particular year?
4. What factors can influence changes in the CPI?
5. How does inflation differ from deflation?

**Tip:** When calculating inflation over multiple years, it’s important to adjust for compounding effects if you’re measuring year-by-year inflation rates.

The Consumer Price Index (CPI) was 150.3 in the year 1995 and 190.7 in 2005. Calculate the rate of inflation to the nearest hundredth of a percent.

Learn how to calculate the inflation rate using the Consumer Price Index (CPI) for the years 1995 and 2005. This problem provides a step-by-step solution using percentage calculations, perfect for students in Grades 9-12.

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