Compute and interpret the annual inflation rates

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Japan was the first Asian country to challenge the dominance of the U.S. in 1980s. However, since then, its economy has been in a slow but relentless decline (The New York Times, October 16, 2010).This country has been trapped in low growth and a downward spiral of prices, known as deflation. Consider the following CPI of Japan for the years 2001 through 2009. Compute and interpret the annual inflation rates in Japan in the 2000s.

Year

2001

2002

2003

2004

2005

2006

2007

2008

2009

CPI

120.1

119.0

118.7

118.3

118.7

118.7

118.7

120.3

118.7

Reference no: EM131798343

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