The following table shows a utility company’s cost to supply a fixed amount of power to a new housing development; the indices are specific to the utility industry. Assume that year 0 is the base period. Determine the specific inflation for each period and calculate the average inflation rate over the three‐year period.

Year                 Cost

0.....................$504,000

1.....................$538,400

2.....................$577,000

3.....................$629,500