ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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CPI Current Year-CPI of Previous Year/CPI of Previous Year X 100
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CPI of Base Year-CPI of Current Year/CPI of Current Year X 100
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PPI / CPI X 100
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PPI X CPI / 100
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Detailed explanation-1: -The current cost of the basket is compared to its cost in the prior year, and then multiplied by 100 to determine the percentage. The calculated CPI is then used to determine the inflation rate.
Detailed explanation-2: -To find the CPI in any year, divide the cost of the market basket in year t by the cost of the same market basket in the base year. The CPI in 1984 = $75/$75 x 100 = 100 The CPI is just an index value and it is indexed to 100 in the base year, in this case 1984. So prices have risen by 28% over that 20 year period.
Detailed explanation-3: -The annual inflation rate for the United States is 6.4% for the 12 months ended January 2023 after rising 6.5% previously, according to U.S. Labor Department data published Feb. 14. The next inflation update is scheduled for release on March 14 at 8:30 a.m. ET.
Detailed explanation-4: -First, subtract the CPI from the beginning date (A) from the later date (B), and divide it by the CPI for the beginning date (A). Then multiply the result by 100 to get the inflation rate percentage.