Professional Documents
Culture Documents
Cpi and Inflation
Cpi and Inflation
CPI :
The Consumer price index (CPI) is calculated by collecting data on the prices
of a “basket” of commonly purchased goods and services overtime. These
items include food, Transportation, housing, Medical care and more.
Inflation :
Inflation is measured by tracking changes in the CPI over specific periods like
monthly or yearly. Government agencies or statistical organizations typically
gather this data from various sources as surveys, retail stores and services
providers to calculate Cpi and inflation rate.
Or more precisely
∑( × )
( )× 100
∑( × )
1. Calculate the total cost of purchasing the base year fixed basket(100
Soccer balls,40 Shoes, 20 Concert tickets) in each year.
.
Inflation rate in 2017 = × 100 = 13.2%
. .
Inflation rate in 2018 = × 100 = 10.25%
.
The End