A country reports the total expenditures on the fixed CPI basket for the past three years. The cost of the CPI basket in 2010 was $23,000, the cost of the CPI basket for the reference base period, 2011, was $23,805, and the cost of the CPI basket in 2012 was $24,500. The CPI for 2012 is

Question

Quizplus · Accepted Answer

The CPI for 2012 is calculated as (Cost of basket in 2012 / Cost of basket in base year 2011) * 100 = ($24,500 / $23,805) * 100 = 102.9.

A Country Reports the Total Expenditures on the Fixed CPI