Question

Let's assume that the cost of a basket of goods for the year 2010 was $233.57, and that the same year was designated as the base year. what is the cpi for the year 2010?

Answer 1

Hi. In order to find the cpi, you divide the price of the basket of goods in the year for which you are calculating the CPI by the price of the basket of goods in the base year and multiply the result by 100.

233.57 ÷ 2010 = 0.1162039800995025 x 100 = 11.62

I hope this helps.

Take care,
Diana