As you know in Q's presentation The Consumer Price Index (CPI) is a tool used to measure how prices for

things people buy regularly change over time. It helps us understand if the cost of living is going up
(inflation) or down (deflation) and is important for economic decisions like setting wages and interest
rates. ( for connection)

(One of the uses of CPI), CPI is like a measuring stick for inflation. It helps us see if stuff is getting more
expensive over time. (The reason we can use the consumer price index )to measure is that When the CPI
rises, it indicates that, on average, the prices of goods and services have increased, which means a dollar
can buy fewer goods and services than it could in the past. So from the dollar amount of the past, we can
compute how much its value in today's dollars

Inflation makes it harder to compare dollar amounts from different times

So comparing dollars from different times is something very useful

And something that you use sometimes during your life

Whether you bought a house and you are selling later on

And you want to see if you have a real gain or loss in that house

Let me explain the definition of each thing in the (formula)

Value in this year’s dollar means a specific dollar amount in the past worth how much in the year you
want to find out, for example, 2 thousand dollars in 1999 worth more than 2 thousands 2 hundred in
2004

Value in a past year’s Dollar A specific dollar amount in the past you choose to find out ( ex each)