If the consumer price index changes from 125 in september to 150 in october, what is the rate of inflation?

a. 20.0%

b. 16.7%

c. 9.1%

d. 45.5%

The rate of inflation is analogous to the percent difference of the original to the new price. Thus, its formula is written as:

Rate of Inflation = [New price - Base price]/Base Price * 100

Rate of inflation = (150 - 125) / 125 * 100 = 20%

So, the answer is A.