According to the link below, what was Canada's rate of inflation for the time period 2007-11? What is the answer for question 1: http://postimage.org/image/nwb6cv2ef/

Expert Answers

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To find the rate of inflation, we take the consumer price index in the starting year (2007, in this case) and we subtract it from the consumer price index in the ending year (2011, in this case).  We take the difference between these two and divide it by the consumer price index in the starting year.  Given the data found through following instructions in your link, this equation is

(119.9 – 111.5) / 111.5

This becomes

8.4/111.5

Which calculates out to

7.5%.

Please note that this is not the same thing as saying that Canada had 7.5% inflation each year, which would be quite high.  Instead, this is a cumulative inflation rate for the entire period.

Therefore, we can say that the overall rate of inflation in Canada for these years was 7.5%

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