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7) Below is a theoretical basket of goods for Germany with their respective prices in 1985 as well as in 2020 and 2021. Assuming the
7) Below is a theoretical basket of goods for Germany with their respective prices in 1985 as well as in 2020 and 2021.
- Assuming the base year is 1985, calculate the German CPI for 2020 and 2021
- What was the inflation rate in 2021?
| Basket Items | 2005 | 2020 | 2021 |
| Beer | 9.50 | 20.00 | 22.00 |
| Bratwurst | 1.40 | 2.60 | 2.75 |
| Strudel | 3.20 | 4.65 | 4.80 |
| Steins | 6.75 | 8.50 | 8.70 |
| Footwear | 28.00 | 41.00 | 43.25 |
| TOTAL | 48.85 | 76.75 | 81.50 |
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International Marketing
Authors: Philip R Cateora, John Graham, Mary Gilly
18th Edition
1260547876, 9781260547870
