The seasonally adjusted rate increases for gasoline, unleaded regular, during early 2011 are as follows:

a. Assuming the index value in January 2011 was 278.404, determine the index for each year from February to April 2011 to three places after the decimal.

b. Since inflation, like interest, is compounded from period to period (e.g., month to month), estimate the monthly inflation rate per month from January 2011 to April 2011. 

Transcribed Image Text:

Month February March April Rate % 2.215% 11.867% 7.629%