Between October 2001 and October 2002, the CPI in Canada rose from 116.5 to 119.8 and the CPI in Mexico rose from 93.2 to 102.3. What were the inflation rates for Canada and Mexico over this one-year period

2.83% and 9.76% for Canada and Mexico respectively.

Explanation:

Inflation rate for Canada is calculated below

Change in CPI = 119.8 - 116.5 = 3.3

Inflation rate = 3.3/116.5 = 0.0283 or 2.83%

Inflation rate for Mexico is calculated below

Change in CPI = 102.3 - 93.2 = 9.1

Inflation rate = 9.1/93.2 = 0.0976 or 9.76%

Mexico had a higher inflation rate compared to Canada.