Suppose that the consumer price index at year-end 2011 was 150and by year-end 2012 had risen to 160. What will be the inflation rate during 2012? “My money wage rose by 6 percent last year, but...

Suppose that the consumer price index at year-end 2011 was 150and by year-end 2012 had risen to 160. What will be the inflation rate during 2012?

“My money wage rose by 6 percent last year, but inflation completely erased these gains. How can I get ahead when inflation continues to wipe out my increases in earnings?” What’s wrong with this way of thinking?