9. The CPI-U (U.S. city average, all items) has the following annual averages:

Year Index 2002 179.9 2003 184.0 2004 188.9 2005 195.3 2006 201.6

a. For each year from 2003 to 2006 determine the annual infl ation rate in percent to two decimal places.

b. Since infl ation, like interest, is compounded from period to period (e.g., year to year), estimate the overall annual infl ation rate per year from 2002 to 2006. Suggestion! Do not simply average the rates of part (a).