If the CPI has a value of 115 today and the base year is 2014, then consumer prices have
A) Increased by 15 per cent since the base year.
B) Increased by 1.5 per cent since the base year.
C) More than doubled since the base year.
D) Declined 15 per cent since the base year.

Question

Quizplus · Accepted Answer

A CPI value of 115 indicates a 15% increase in consumer prices since the base year (100). This is calculated using the formula [(Current CPI - Base CPI)/Base CPI] x 100. Therefore, since the CPI has increased by 15 points, it has increased by 15% from the base year.

If the CPI Has a Value of 115 Today and the Base