Question

A basket of goods and services representative of the CPI cost $2750 when the CPI stood at 118.3.

What did the basket of goods cost 10 years earlier, when the CPI was at 93.1?

What was the overall percent inflation experienced by consumers for the entire 10-year period?

Answer 1

The basket of goods cost $2,093.50 10 years earlier. The overall percent inflation experienced by consumers for the entire 10-year period was 25.3%.