Note that 100 is the base CPI value from December 1982. The latest CPI is listed under unadjusted 'All items -for example, in April 2020 this was 256.389; values higher than this number have increased more than average since December 1982; those less than this have increased less than average. Consider the effects of inflation on retirees. (We painted a pessimistic picture in Section 38 - one example showed that $40,000 per year in 40 years time equates to just $12,262 in today's dollars.) It should be clear that some categories used in the CPI calculation are less of an issue for retired folks: a) Look down the Expenditure Category column and identify some categories that might be important for retirees. Then look at the indices for these categories. Are these better (lower) or worse (higher) than the overall number? Write down the indices for 'All Items' as well as for the categories you choose as important for retirees. (Are any of these 'much higher than expected?) b) Discuss whether the retirement gloom shown in 3B was pessimistic or a reality Note that 100 is the base CPI value from December 1982. The latest CPI is listed under unadjusted 'All items -for example, in April 2020 this was 256.389; values higher than this number have increased more than average since December 1982; those less than this have increased less than average. Consider the effects of inflation on retirees. (We painted a pessimistic picture in Section 38 - one example showed that $40,000 per year in 40 years time equates to just $12,262 in today's dollars.) It should be clear that some categories used in the CPI calculation are less of an issue for retired folks: a) Look down the Expenditure Category column and identify some categories that might be important for retirees. Then look at the indices for these categories. Are these better (lower) or worse (higher) than the overall number? Write down the indices for 'All Items' as well as for the categories you choose as important for retirees. (Are any of these 'much higher than expected?) b) Discuss whether the retirement gloom shown in 3B was pessimistic or a reality