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Homework answers / question archive / Given the following data, what was the value of the consumer price index in the base year? Calculate the annual rate of consumer price inflation in 2015 in each of the following situations: b
Given the following data, what was the value of the consumer price index in the base year? Calculate the annual rate of consumer price inflation in 2015 in each of the following situations:
b. The CPI equals 150 in 2014 and 175 in 2015.
In the Base Year Consumer Price Index is always equals to 100.
b. Computation of Annual Rate of Consumer Price Inflation in 2015:
Annual Rate of Consumer Price Inflation in 2015 = {CPI (in 2015) - CPI (in 2014)}/ (CPI (in 2014)
= (175 -150) / 150
Annual Rate of Consumer Price Inflation in 2015 = 16.67 %
