In this exercise we see the cumulative effects of Inflation. Refer to the CPi table. Consider the one-year inflation rate for each of the three years from December 1970 to December 1973. Find the sum of these th Is the sum the same as finding the three-year Inflation rate from December 1970 to December 1973? Yes, the sums are the same. No, the sums are not the same. Historical Inflation December CPI 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 18.2 21.5 23.4 24.1 23.6 25.0 26.5 26.7 26.9 26.7 26.8 27.6 28.4 28.9 29.4 29.8 30.0 30.4 30.9 31.2 31.8 32.9 33.9 35.5 37.7 39.8 41.1 42.5 46.2 51.9 55.5 58.2 62.1 67.7 76.7 86.3 CPI in December and inflation rate Inflation rate December CPI 1981 94.0 18.1% 1982 97.6 8.8% 1983 101.3 3.0% 1984 105.3 -2.1% 1985 109.3 5.9% 1986 110.5 6.0% 1987 115.4 0.8% 1988 120.5 0.7% 1989 126.1 -0.7% 1990 133.8 0.4% 1991 137.9 3.0% 1992 141.9 2.9% 1993 145.8 1.8% 1994 149.7 1.7% 1995 153.5 1.4% 1996 158.6 0.7% 1997 161.3 1.3% 1998 163.9 1.6% 1999 168.3 1.0% 2000 174.0 1.9% 2001 176.7 3.5% 2002 180.9 3.0% 2003 184.3 4.7% 2004 190.3 6.2% 2005 196.8 5.6% 2006 201.8 3.3% 2007 210.0 3.4% 2008 210.2 8.7% 2009 215.9 12.3% 2010 219.2 6.9% 2011 225.7 4.9% 2012 229.6 6.7% 2013 233.0 9.0% 2014 234.8 13.3% 2015 236.5 12.5% 2016 241.4 Inflation rate 8.9% 3.8% 3.8% 3.9% 3.8% 1.1% 4.4% 4.4% 4.6% 6.1% 3.1% 2.9% 2.7% 2.7% 2.5% 3.3% 1.7% 1.6% 2.7% 3.4% 1.6% 2.4% 1.9% 3.3% 3.4% 2.5% 4.1% 0.1% 2.7% 1.5% 3.0% 1.7% 1.5% 0.8% 0.7% 2.1%