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Consumer Price Index

Consumer Price Index. Economics University By Steven Reff and Dick Brunelle http://apecon.us/CPI.gif. The CPI – Consumer Price Index. The CPI is published by the Bureau of Labor and Statistics each month. The base year is always = 100

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Consumer Price Index

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  1. Consumer Price Index Economics University By Steven Reff and Dick Brunelle http://apecon.us/CPI.gif

  2. The CPI – Consumer Price Index The CPI is published by the Bureau of Labor and Statistics each month. The base year is always = 100 As you can tell by this chart the base year is in the beginning of 1984

  3. The CPI – Consumer Price Index Now look at the years 1986 and 1987. 4 Notice that the increase in the CPI is 4 points, yet the percent increase form 1986 to 1987 is 3.6 Why?

  4. The CPI – Consumer Price Index Take the two consecutive years CPI – find the difference. 113.6 - 109.6 = 4 Now, divide the 4 by the original year’s CPI 109.6 / 4 = .0364 Finally, times .0364 by 100 = 3.64

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