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The Consumer Price Index was 234 in Dec/2014 and was 247 in Dec/2017. Compute the annual growth rate of the CPI (inflation) for this period.

The Consumer Price Index was 234 in Dec/2014 and was 247 in Dec/2017. Compute the annual growth rate of the CPI (inflation) for this period.

To compute the 2017 CPI, the BLS uses quantity data for a 2014 survey (2014 is the base year). From 2014 to 2017, the number of smart phones purchased in the US increased significantly while its average price decreased around 50%. How this impacts the inflation computed from the CPI?

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