If a basket of goods cost $630 today when the CPI is at 108.2, then what did the same basket of goods cost 15 years ago when the CPI was as 98.6?

Question

Quizplus · Accepted Answer

The cost of the basket of goods 15 years ago can be calculated using the formula: Cost 15 years ago = (Cost today / CPI today) * CPI 15 years ago. Plugging in the numbers: (630 / 108.2) * 98.6 = 573. Therefore, the basket of goods cost $573 15 years ago, not $630.

If a Basket of Goods Cost $630 Today When the CPI