{"id":86611,"date":"2025-06-01T03:52:22","date_gmt":"2025-06-01T03:52:22","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=86611"},"modified":"2025-06-01T03:52:22","modified_gmt":"2025-06-01T03:52:22","slug":"if-the-price-index-increased-from-100-in-2021-to-110-in-2022-to-132-in","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/if-the-price-index-increased-from-100-in-2021-to-110-in-2022-to-132-in\/","title":{"rendered":"If the price index increased from 100 in 2021 to 110 in 2022 to 132 in"},"content":{"rendered":"

If the price index increased from 100 in 2021 to 110 in 2022 to 132 in 2023, then the rate of inflation is :<\/p>\n

[amp_mcq option1=”10%” option2=”32%” option3=”20%” option4=”Cannot be determined” correct=”option3″]<\/p>\n

\n
\n
This question was previously asked in<\/div>\n
UPSC CDS-2 – 2024<\/div>\n<\/div>\n
Download PDF<\/a>Attempt Online<\/a><\/div>\n<\/div>\n
\nThe correct option is C. The question provides price index values for three years and asks for “the rate of inflation”.
\n<\/section>\n
\nThe rate of inflation between two periods is calculated as the percentage change in the price index from the earlier period to the later period.
\n– Inflation rate from 2021 to 2022:
\n `((Index in 2022 – Index in 2021) \/ Index in 2021) * 100`
\n `((110 – 100) \/ 100) * 100 = (10 \/ 100) * 100 = 10%`
\n– Inflation rate from 2022 to 2023:
\n `((Index in 2023 – Index in 2022) \/ Index in 2022) * 100`
\n `((132 – 110) \/ 110) * 100 = (22 \/ 110) * 100 = (1\/5) * 100 = 20%`
\nThe inflation rates for the two periods are 10% and 20%. The question asks for “the rate of inflation” (singular). In such sequences, it often refers to the rate in the most recent period calculated or the cumulative change. The cumulative percentage increase from 2021 to 2023 is `((132 – 100) \/ 100) * 100 = 32%`. Both 20% (rate in 2023) and 32% (total change) are among the options (A and B are not possible as singular rates for the whole period). However, the standard interpretation of “the rate of inflation” when a time series is given is often the latest period’s annual rate. Thus, 20% is the most likely intended answer as it represents the inflation rate for the year 2023.
\n<\/section>\n
\nOption A (10%) is the inflation rate for the year 2022. Option C (20%) is the inflation rate for the year 2023. Option B (32%) is the total percentage increase in the price index from 2021 to 2023. Given that both 10% and 20% are valid annual rates within the period, and 20% is the rate for the latest year, it is the most probable answer.
\n<\/section>\n","protected":false},"excerpt":{"rendered":"

If the price index increased from 100 in 2021 to 110 in 2022 to 132 in 2023, then the rate of inflation is : [amp_mcq option1=”10%” option2=”32%” option3=”20%” option4=”Cannot be determined” correct=”option3″] This question was previously asked in UPSC CDS-2 – 2024 Download PDFAttempt Online The correct option is C. The question provides price index … <\/p>\n

Detailed SolutionIf the price index increased from 100 in 2021 to 110 in 2022 to 132 in<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1088],"tags":[1103,1120,1174],"class_list":["post-86611","post","type-post","status-publish","format-standard","hentry","category-upsc-cds-2","tag-1103","tag-economic-development","tag-national-income-gross-domestic-product","no-featured-image-padding"],"yoast_head":"\nIf the price index increased from 100 in 2021 to 110 in 2022 to 132 in<\/title>\n<meta name=\"description\" content=\"The correct option is C. The question provides price index values for three years and asks for "the rate of inflation". The rate of inflation between two periods is calculated as the percentage change in the price index from the earlier period to the later period. - Inflation rate from 2021 to 2022: `((Index in 2022 - Index in 2021) \/ Index in 2021) * 100` `((110 - 100) \/ 100) * 100 = (10 \/ 100) * 100 = 10%` - Inflation rate from 2022 to 2023: `((Index in 2023 - Index in 2022) \/ Index in 2022) * 100` `((132 - 110) \/ 110) * 100 = (22 \/ 110) * 100 = (1\/5) * 100 = 20%` The inflation rates for the two periods are 10% and 20%. The question asks for "the rate of inflation" (singular). In such sequences, it often refers to the rate in the most recent period calculated or the cumulative change. The cumulative percentage increase from 2021 to 2023 is `((132 - 100) \/ 100) * 100 = 32%`. Both 20% (rate in 2023) and 32% (total change) are among the options (A and B are not possible as singular rates for the whole period). However, the standard interpretation of "the rate of inflation" when a time series is given is often the latest period's annual rate. Thus, 20% is the most likely intended answer as it represents the inflation rate for the year 2023.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/if-the-price-index-increased-from-100-in-2021-to-110-in-2022-to-132-in\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"If the price index increased from 100 in 2021 to 110 in 2022 to 132 in\" \/>\n<meta property=\"og:description\" content=\"The correct option is C. The question provides price index values for three years and asks for "the rate of inflation". The rate of inflation between two periods is calculated as the percentage change in the price index from the earlier period to the later period. - Inflation rate from 2021 to 2022: `((Index in 2022 - Index in 2021) \/ Index in 2021) * 100` `((110 - 100) \/ 100) * 100 = (10 \/ 100) * 100 = 10%` - Inflation rate from 2022 to 2023: `((Index in 2023 - Index in 2022) \/ Index in 2022) * 100` `((132 - 110) \/ 110) * 100 = (22 \/ 110) * 100 = (1\/5) * 100 = 20%` The inflation rates for the two periods are 10% and 20%. The question asks for "the rate of inflation" (singular). In such sequences, it often refers to the rate in the most recent period calculated or the cumulative change. The cumulative percentage increase from 2021 to 2023 is `((132 - 100) \/ 100) * 100 = 32%`. Both 20% (rate in 2023) and 32% (total change) are among the options (A and B are not possible as singular rates for the whole period). However, the standard interpretation of "the rate of inflation" when a time series is given is often the latest period's annual rate. Thus, 20% is the most likely intended answer as it represents the inflation rate for the year 2023.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/if-the-price-index-increased-from-100-in-2021-to-110-in-2022-to-132-in\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T03:52:22+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"If the price index increased from 100 in 2021 to 110 in 2022 to 132 in","description":"The correct option is C. The question provides price index values for three years and asks for \"the rate of inflation\". The rate of inflation between two periods is calculated as the percentage change in the price index from the earlier period to the later period. - Inflation rate from 2021 to 2022: `((Index in 2022 - Index in 2021) \/ Index in 2021) * 100` `((110 - 100) \/ 100) * 100 = (10 \/ 100) * 100 = 10%` - Inflation rate from 2022 to 2023: `((Index in 2023 - Index in 2022) \/ Index in 2022) * 100` `((132 - 110) \/ 110) * 100 = (22 \/ 110) * 100 = (1\/5) * 100 = 20%` The inflation rates for the two periods are 10% and 20%. The question asks for \"the rate of inflation\" (singular). In such sequences, it often refers to the rate in the most recent period calculated or the cumulative change. The cumulative percentage increase from 2021 to 2023 is `((132 - 100) \/ 100) * 100 = 32%`. Both 20% (rate in 2023) and 32% (total change) are among the options (A and B are not possible as singular rates for the whole period). However, the standard interpretation of \"the rate of inflation\" when a time series is given is often the latest period's annual rate. Thus, 20% is the most likely intended answer as it represents the inflation rate for the year 2023.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/if-the-price-index-increased-from-100-in-2021-to-110-in-2022-to-132-in\/","og_locale":"en_US","og_type":"article","og_title":"If the price index increased from 100 in 2021 to 110 in 2022 to 132 in","og_description":"The correct option is C. The question provides price index values for three years and asks for \"the rate of inflation\". The rate of inflation between two periods is calculated as the percentage change in the price index from the earlier period to the later period. - Inflation rate from 2021 to 2022: `((Index in 2022 - Index in 2021) \/ Index in 2021) * 100` `((110 - 100) \/ 100) * 100 = (10 \/ 100) * 100 = 10%` - Inflation rate from 2022 to 2023: `((Index in 2023 - Index in 2022) \/ Index in 2022) * 100` `((132 - 110) \/ 110) * 100 = (22 \/ 110) * 100 = (1\/5) * 100 = 20%` The inflation rates for the two periods are 10% and 20%. The question asks for \"the rate of inflation\" (singular). In such sequences, it often refers to the rate in the most recent period calculated or the cumulative change. The cumulative percentage increase from 2021 to 2023 is `((132 - 100) \/ 100) * 100 = 32%`. Both 20% (rate in 2023) and 32% (total change) are among the options (A and B are not possible as singular rates for the whole period). However, the standard interpretation of \"the rate of inflation\" when a time series is given is often the latest period's annual rate. Thus, 20% is the most likely intended answer as it represents the inflation rate for the year 2023.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/if-the-price-index-increased-from-100-in-2021-to-110-in-2022-to-132-in\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T03:52:22+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/if-the-price-index-increased-from-100-in-2021-to-110-in-2022-to-132-in\/","url":"https:\/\/exam.pscnotes.com\/mcq\/if-the-price-index-increased-from-100-in-2021-to-110-in-2022-to-132-in\/","name":"If the price index increased from 100 in 2021 to 110 in 2022 to 132 in","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T03:52:22+00:00","dateModified":"2025-06-01T03:52:22+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"The correct option is C. The question provides price index values for three years and asks for \"the rate of inflation\". The rate of inflation between two periods is calculated as the percentage change in the price index from the earlier period to the later period. - Inflation rate from 2021 to 2022: `((Index in 2022 - Index in 2021) \/ Index in 2021) * 100` `((110 - 100) \/ 100) * 100 = (10 \/ 100) * 100 = 10%` - Inflation rate from 2022 to 2023: `((Index in 2023 - Index in 2022) \/ Index in 2022) * 100` `((132 - 110) \/ 110) * 100 = (22 \/ 110) * 100 = (1\/5) * 100 = 20%` The inflation rates for the two periods are 10% and 20%. The question asks for \"the rate of inflation\" (singular). In such sequences, it often refers to the rate in the most recent period calculated or the cumulative change. The cumulative percentage increase from 2021 to 2023 is `((132 - 100) \/ 100) * 100 = 32%`. Both 20% (rate in 2023) and 32% (total change) are among the options (A and B are not possible as singular rates for the whole period). However, the standard interpretation of \"the rate of inflation\" when a time series is given is often the latest period's annual rate. Thus, 20% is the most likely intended answer as it represents the inflation rate for the year 2023.","breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/if-the-price-index-increased-from-100-in-2021-to-110-in-2022-to-132-in\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/if-the-price-index-increased-from-100-in-2021-to-110-in-2022-to-132-in\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/if-the-price-index-increased-from-100-in-2021-to-110-in-2022-to-132-in\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"UPSC CDS-2","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/upsc-cds-2\/"},{"@type":"ListItem","position":3,"name":"If the price index increased from 100 in 2021 to 110 in 2022 to 132 in"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/86611","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=86611"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/86611\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=86611"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=86611"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=86611"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}