Answer to Question #100438 in Macroeconomics for kuk

Question

If monthly inflation rate was 3% in January 2017, in January 2018 it was 2%. What was the annual in January 2018, if December 2017 has annualy 2%?

Answer 1

Monthly inflation rate; January 2017=3%, January 2018= 2%.

Annual inflation rate in January 2018=?

Annual inflation rate,$Ar= (2017-2018)/2018.$

Ar= (3-2%)/2%

Ar= 0.5%