Answer :
3.2% is projected as the inflation rate for 2022. This provides information on the general pattern of rising costs and the gradual loss of buying power by showing a slight increase in prices when compared to the base year (2021).
We can use the following formula to determine the inflation rate in 2022:
Inflation Rate is calculated as [(CPI2 - CPI1) / CPI1] * 100,
where CPI1 is the consumer price index for the base year (2021) and CPI2 is the index for the year after (2022).
Inserting the values:
[(129 - 125) / 125] * 100 is the inflation rate.
= (4 / 125) * 100
= 3.2%.
Consequently, in 2022, inflation will be 3.2%. The average percentage increase in the cost of goods and services over a given time period is known as the inflation rate. In this instance, the inflation rate of 3.2% means that prices rose 3.2% on average between 2021 and 2022.
For a variety of stakeholders, including politicians, corporations, and consumers, understanding the inflation rate is essential. It aids in making wise financial decisions, assessing the effect on cost of living, tracking changes in purchasing power, and directing economic policy.
In conclusion, the inflation rate for 2022 is estimated to be 3.2% using the provided CPI statistics. This provides information on the general pattern of rising costs and the gradual loss of buying power by showing a slight increase in prices when compared to the base year (2021).
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