A consumer survey conducted in two consecutive years determined that a fixed baskets of goods and services cost $95.00 in year 1 and $96.25 in year 2. The rate of inflation from year 1 to year 2 is ___ %.

Fill in blank.

1.315%

Step-by-step explanation:

Given:

Prices:

Year 1 =old price =$95

Year 2 = new price = $96.25

The inflation rate is the difference in price between two Given period :

Inflation rate :

(Change in price / old price) * 100%

((New price - old price) / old price) * 100%

((96.25 - 95) / 96) * 100%

= (1.25 / 95) * 100%

= 0.0131578 * 100%

= 1.315%