In addition to the overall CPI, the BLS reports the index for the subcategories. The overall CPI in May, 2013, was 232.9. Following are the values for some of the subcategories, taken from the CPI website:
Dairy products........... 216.3
Fruits, vegetables............ 289.2
Alcoholic beverages.......... 234.4
Rent (primary residence)....... 266.6
House furnishings............ 125.4
Footwear.............. 136.4
Tobacco products.......... 869.0
All of these values are based on using 1982–1984 as the base period, the same period used by the overall CPI.
a. Find the subcategory in the list that has the least amount of inflation, compared to the base period. Write a few sentences comparing it to the overall CPI that could be under-stood by someone who does not know what index numbers are.
b. Find the subcategory in the list that has the most amount of inflation, compared to the base period. Write a few sentences comparing it to the overall CPI that could be understood by someone who does not know what index numbers are.
c. Write a brief report discussing all of the information that could be understood by someone who does not know what index numbers are.