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Investment advice and corporate finance
Module 12Investment Management and Corporate FinanceThe consumer price index rose from 128.0 to 131.2 over a year. What was the inflation rate?
Inflation = (CPI now ÷ CPI a year ago − 1) × 100 = (131.2 ÷ 128.0 − 1) × 100 = 2.5%. 3.2% is the change in index points, not a percentage. 2.4% divides the change by the later index instead of the earlier one. 31.2% reads the index level against the base of 100. Source: SIDC Module 12 Study Outline (Jul-Dec 2026) Section 1 Topic 2 Fundamentals of Economics; N. G. Mankiw, Macroeconomics (as at October 2026).
Quoting the point change in the index as the percentage change.
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