There is a 5% increase in the price of food basket from the base year to the current year
Cost of a basket of food in the base year = $200
The price of a food basket a year later = $210
Increase in price from base year = Cost of the food basket a year later - Cost of the food basket in the base year
= 210-200
The formula for percentage increase is given:
Percentage increase = Increase in price from base year/Cost of a basket of food in base year*100
Substituting the values in the formula we get the following:
= 10/200*100
= 0.05*100 = 5%
So, the percentage increase is 5%
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