In one year, the CPI increased from 105.6 to 106.7. In order to have the same purchasing power as $100 at the start of the year, you would need $103.14 at the end of the year.

Question

Quizplus · Accepted Answer

The correct calculation for the increase in the amount needed to maintain the same purchasing power is based on the percentage change in the CPI. The change from 105.6 to 106.7 is an increase of 1.04%, so to maintain the same purchasing power as $100 at the start of the year, you would need $101.04 at the end of the year, not $103.14.

In One Year, the CPI Increased from 105