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Final price index = 140

Initial price index = 125

Therefore, difference in price index between period 3 and 4 is : 140 - 125 = 15

Lastly, 15/125 * 100 = 12%

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How can one determine the inflation rate by utilizing the Consumer Price Index (CPI)?

To determine the inflation rate using the Consumer Price Index (CPI), you can compare the current CPI to the CPI from a previous period. The percentage difference between the two values represents the inflation rate.


What is the consumer price index used for?

It is used for measuring inflation. It will track a basket of goods over a period of time measuring the cost along the way. The rise and fall of inflation is based on the consumer price index.


How can one determine inflation using the Consumer Price Index (CPI)?

To determine inflation using the Consumer Price Index (CPI), one can compare the current CPI to the CPI from a previous period. If the current CPI is higher than the previous CPI, it indicates inflation. The percentage difference between the two CPI values can be used to calculate the inflation rate.


If the Consumer Price Index (CPI) for 1989 was 124 the rate of inflation between the base period and 1989 was ..?

To calculate the rate of inflation between the base period and 1989 using the Consumer Price Index (CPI), you can use the formula: [ \text{Inflation Rate} = \left( \frac{\text{CPI in 1989} - \text{CPI in base year}}{\text{CPI in base year}} \right) \times 100 ] Assuming the base period CPI is 100, the calculation would be: [ \text{Inflation Rate} = \left( \frac{124 - 100}{100} \right) \times 100 = 24% ] Thus, the rate of inflation between the base period and 1989 was 24%.


The consumers price index helps the U.S. government measure what?

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Related Questions

How can one determine the inflation rate by utilizing the Consumer Price Index (CPI)?

To determine the inflation rate using the Consumer Price Index (CPI), you can compare the current CPI to the CPI from a previous period. The percentage difference between the two values represents the inflation rate.


How can one determine the rate of inflation using the Consumer Price Index (CPI)?

To determine the rate of inflation using the Consumer Price Index (CPI), you can compare the current CPI to the CPI from a previous period. The percentage difference between the two values indicates the rate of inflation.


What is the consumer price index used for?

It is used for measuring inflation. It will track a basket of goods over a period of time measuring the cost along the way. The rise and fall of inflation is based on the consumer price index.


How can one determine inflation using the Consumer Price Index (CPI)?

To determine inflation using the Consumer Price Index (CPI), one can compare the current CPI to the CPI from a previous period. If the current CPI is higher than the previous CPI, it indicates inflation. The percentage difference between the two CPI values can be used to calculate the inflation rate.


If the Consumer Price Index (CPI) for 1989 was 124 the rate of inflation between the base period and 1989 was ..?

To calculate the rate of inflation between the base period and 1989 using the Consumer Price Index (CPI), you can use the formula: [ \text{Inflation Rate} = \left( \frac{\text{CPI in 1989} - \text{CPI in base year}}{\text{CPI in base year}} \right) \times 100 ] Assuming the base period CPI is 100, the calculation would be: [ \text{Inflation Rate} = \left( \frac{124 - 100}{100} \right) \times 100 = 24% ] Thus, the rate of inflation between the base period and 1989 was 24%.


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How does the government track inflation?

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