Due to inflation, prices increased by 45% and then dropped by 20%. by what percent did prices increase overall?

let the initial price be $100.

Increase in price due to inflation = 45%

Increased price = 45% of 100=45

Price after increase = 100+45 =$145

After the increase in price there is a drop in price .

Drop in price due to inflation = 20%

Drop in price = 20% of 145=29

New price = 145-29=116

Total increase in price = 116-100=16

Overall there was an increase of 16%.

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