To determine the percentage change in the Consumer Price Index (CPI) from 1988 to 1989, we follow these steps:
1. Identify the CPIs for both years:
- CPI for 1989: 124.0
- CPI for 1988: 122.4
2. Calculate the absolute change in CPI:
[tex]\[
\text{Absolute Change} = \text{CPI}_{1989} - \text{CPI}_{1988} = 124.0 - 122.4 = 1.6
\][/tex]
3. Find the percentage change:
This is done by taking the absolute change, dividing it by the CPI of the initial year (1988), and then multiplying by 100 to convert it to a percentage.
[tex]\[
\text{Percentage Change} = \left( \frac{\text{Absolute Change}}{\text{CPI}_{1988}} \right) \times 100 = \left( \frac{1.6}{122.4} \right) \times 100
\][/tex]
4. Perform the division and multiplication:
[tex]\[
\frac{1.6}{122.4} \approx 0.0130719
\][/tex]
[tex]\[
0.0130719 \times 100 \approx 1.3071895424836555
\][/tex]
So, the percentage change in CPI from 1988 to 1989 is approximately 1.3 percent.
Thus, the answer is:
- 1.3 percent
This matches the provided options, and we conclude that the correct answer is 1.3 percent.
