Question Two (30 points)

Here are values of the CPI (multiplied by 100) for each year from 1990 to 2000.

1. For each year beginning with 1991, calculate the rate of inflation from the previous year. (15 points) Round your answers to 1 decimal place.

Year	CPI	Inflation Rate (%)
1990	130.7
1991	136.2
1992	140.3
1993	144.5
1994	148.2
1995	152.4
1996	156.9
1997	160.5
1998	163
1999	166.5
2000	172.2

2. What happened to inflation rates over the 1990s? Compared to 1990-1991, the inflation rates remained .throughout the 1990`s. Select the right answer:

1. the same
2. higher
3. lower

Explain and justify your answer. (15 points)