Now Calculating the Consumer Price Index:

Item Price Amount Cost

Cheese $2.00 5 $10

Crakers $1.25 8 $10

Total Cost = $20, the take the CPI = Total Cost this period/Total Cost Base period X 100 = 20/20 X 100 = 100

1. Knowing that perios one the base is 100. In period 2, you have the following information:

Item Price Amount Cost

Cheese $2.25 5

Crakers $1.50 8

Solve CPI?

Period 3:

Item Price Amount Cost

Cheese $2.35 5

Crackers $1.60 8

Solve CPI?