$1.$ Assume base year's consumption basket costs $$1,250$ and next year the same consumption basket costs $$1,500.$ If the base year's consumer price index $($CPI$)$ is $100,$ then what is the CPI for next year? Based on the CPI differential of these two year what can you comment on inflation situation from base year to next year?

$2.$ Review the concerned section of the textbook mention at least two limitation of CPI.