If the CPI basket costs $35 in the base period but costs $42, what is the CPI in the next period?

Name: If the CPI basket costs $35 in the base period but costs $42, what is the CPI in the next period?
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Quizplus · Accepted Answer

The Consumer Price Index (CPI) is calculated by taking the cost of the basket in the current period ($42), dividing it by the cost of the basket in the base period ($35), and then multiplying by 100. Therefore, CPI = ($42 / $35) * 100 = 120.

If the CPI Basket Costs $35 in the Base Period