Define inflation and describe the two sources of inflation

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Define inflation and describe the two sources of inflation.

(Inflation) Here are some recent data on the U.S. consumer price index:

YEAR      CPI         YEAR      CPI         YEAR      CPI

1992       140.3     1999       166.6     2006       201.6

1193       144.5     2000       172.2     2007       207.3

1994       148.2     2001       177.1     2008       215.3

1995       152.4     2002       179.9     2009       214.5                    

1996       156.9     2003       184.0     2010       218.1

1997       160.5     2004       188.9     2011       224.9

1998       163.0     2005       195.3     2012       229.6

Compute the inflation rate for each year 1993-2012 determine which were years of inflation.

In which years did deflation occur?

Were there hyperinflation in any year?

Reference no: EM131445390

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