Refer to the following data on the U.S. consumer price index and answer the questions below.

Year	CPI	Year	CPI	Year	CPI	Year	CPI
1988	125.8	1993	152.0	1998	160.5	2003	191.5
1989	131.5	1994	155.7	1999	174.1	2004	196.4
1990	137.5	1995	159.9	2000	179.7	2005	202.8
1991	143.7	1996	164.4	2001	184.6	2006	209.3
1992	147.5	1997	168.0	2002	187.4

1. Compute the inflation rate for each year (1988-1989, 1989-1990, 1990-1991, 1991-1992 etc.) using the CPI data for 1988-2006 in the table above. Show your work.
2. Which years were years of inflation? What would you expect to happen to real interest rates during this time period if nominal rates remained unchanged?
3. In which years did deflation occur? What would you expect to happen to real interest rates during this time period if nominal rates remained unchanged?
4. In which years did disinflation occur?