- Carefully review the formulas to calculate inflation (see page below) and answer the following questions: 1. Complete the table below: Value of basket of goods CPI index 2000-100 Annual inflation rate CPI index 2010-100 Annual inflation rate 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 314,726 315,789 325,263 341,526 375,679 368, 312 359,329 378,374 395,022 430, 298 407,865 592,873 651,567 755,818 814,016 859,600 790,074 2. Calculate annual average inflation rate in the period 2001-2016 [16 years) and its proof. Average inflation rate Formulas for Inflation Inflation rate X-X, 100 X, Where T = Inflation X = last value X, = previous value 1.= [((1+z.)**)-1] - 100 Where TL = Cumulative inflation in the period analyzed n = number of periods Note: The intation rate is always expressed in percentages, but for calculation purposes MUST DE divided by one hundred (100) Value of basket To calculate CPI at different base year, use the rule of three 194711 121,624 2014 3.14 1034 3.14 104ST 124,711.100 128,624? Multiply across the diagonal of known and Guide by the remaining one. 128624 100/124711 = 103.1377 Average Inflation 220 = X; -X 100 X, - 128624 - 124711 124711 . 100 = 3.14% =(1==3*)-1] 100 The 130416 - 124711 124711 * 100 = 4.57% 11. = f((1+.0457)*9)-1] 100 = 2.26%