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Below are values of the consumer price index in the United States for each respective year: Year CPI Year CPI 1970 38.8 2000 172.2 1975

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Below are values of the consumer price index in the United States for each respective year: Year CPI Year CPI 1970 38.8 2000 172.2 1975 53.9 2005 195.3 1980 82.4 2010 218.1 1985 107.6 2014 236.7 1990 130.7 2015 237.0 1995 152.4 (a) Use this table to calculate total inflation over the years 1980-85 and 2010-2015. (b) What is the annual inflation rate for each period, assuming they are five-year periods? 1 [Note: average annual inflation over a multi-year period = It = Pt - 1

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