The Consumer Price Index CPI indicates the relative change

Last updated: 4/3/2023

The Consumer Price Index CPI indicates the relative change in price over time for a fixed basket of goods and services n n 100 where En general if the rate of inflation averages r over n years then the CPI after n years is CPI CPlo CPI is the CPI index at the beginning of the n year period a The CPI was 150 5 for 1995 and 183 8 for 2004 Assuming that annual inflation remained constant for this time period determine the average annual inflation rate b Using the inflation rate from part a in what year will the CPI reach 257