1. Given below is data about the Consumer Price Index (CPI) in the Australian economy between 2012 and 2014.CPI rates are published by the Australian Bureau of Statistics (ABS) annually. The CPI reference base year is 2011-12 in the data given below.

Year	CPI	Inflation Rate
2012	100.0
2013	102.4	?
2014	105.4	?

A. Calculate the inflation rate for 2014. Show the formulae used and your workings. (1 mark)

B. Is this rate within or outside the Reserve Bank of Australia's inflation rate target? Briefly explain your answer. (1 mark)