The inflation rate is calculated using the formula:

Inflation Rate=CPIcurrent−CPIpreviousCPIprevious×100\text{Inflation Rate} = \frac{\text{CPI}_{\text{current}} - \text{CPI}_{\text{previous}}}{\text{CPI}_{\text{previous}}} \times 100 Inflation Rate = CPIprevious ​ CPIcurrent ​ − CPIprevious ​​ × 100

Substitute the given values:

Inflation Rate=125.9−123.0123.0×100=2.9123.0×100≈2.36%\text{Inflation Rate} = \frac{125.9 - 123.0}{123.0} \times 100 = \frac{2.9}{123.0} \times 100 \approx 2.36\% Inflation Rate = 123.0125.9 − 123.0 ​ × 100 = 123.02.9 ​ × 100 ≈ 2.36%

B. 2.30%: This is close but results from rounding errors or miscalculation.

C. 0.98% and D. 1.02%: These values are far below the correct inflation rate calculated using the formula.