In 1995 the CPI for all items was 152.4. Find the price in 1995 of a typical item that had an average price of $5 during the years 1982 to 1984.
1 answer
If the baseline (100) period for the CPI is 1982-1984, then the typical price of a $5 item at that time would be 5 x 1.524 = $7.62 in 1995.