Table 1 displays the Consumer Price Index (CPI) for two nations in the world. The year 2015 is the base year and there will be no inflation. Start calculating inflation rates for 2016. Use this information to answer the questions that follow:



Table 1 CPI by nation on January 1st of each year

Year Canada South Africa

2015 100 100

2016 100.80 106.57

2017 101.96 112.09

2018 103.68 117.16

2019 106.03 121.99

2020 107.05 125.90

2021 111.04 131.71

2022 118.44 140.98

AUsing your knowledge of how to calculate inflation rates, fill in the inflation rate for the two countries indicated for each of the years indicated. You will be calculating information rates between years. For example, the inflation rate for 2016 is the change in the CPI between 2015 and 2016. For 2021, the inflation rate is the change in CPI from 2020 to 2021. An application example in Lesson 6 shows how to calculate the inflation rate.

Inflation Rate by nation on January 1st of each year

Year Canada South Africa

2016

0.80%



6.57%

2017

0.96%



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2018

1.69%



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2019

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2020

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2021

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2022

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BCompare the inflation rates for these two countries,

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has the largest rate of inflation in 2017.

CCompare the inflation rates for these two countries,

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has the largest rate of inflation in 2020.

DWhat does the inflation rate tell us about purchasing power in each country? In 2017 the purchasing power in Canada is

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from the previous year, while in South Africa it is

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from the previous year; in 2020 the purchasing power in Canada is

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from the previous year, while in South Africa it is

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from the previous year.