If the cost of apparel increases by 50 percent, then, other things the same, the CPI is likely to increase by about

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Quizplus · Accepted Answer

The cost of apparel is just one component of the CPI basket of goods and services. A 50 percent increase in apparel prices would only have a small impact on the overall CPI since it's only one item out of many. However, the increase in the price of apparel would have a greater impact on the core inflation rate (CPI excluding food and energy prices) than on the headline inflation rate (CPI including all prices). A 50 percent increase in the price of apparel would suggest a general upward trend in prices, which would push up the overall CPI. The exact impact on the CPI would depend on the weight of apparel in the CPI basket, but a 2.0 percent increase in the CPI is a reasonable estimate.

If the Cost of Apparel Increases by 50 Percent, Then