CPI is the current year cost of the goods divided by the base year cost of the goods multiplied by a hundred. Current year cost of goods = current year price multiplied by current year quantity.Base year cost of goods = Base year price multiplied by base year quantity. Base year cost of goods, CPI for the given year = 70/50×100=140 .140 is the CPI for the given year.
A consumer price index (CPI) could be a price index, the worth of a weighted average market basket of consumer goods and services purchased by households. Changes in measured CPI track changes in prices over time. A CPI is an applied mathematics estimate made exploitation the costs of a sample of representative things whose prices are collected periodically.
Sub-indices and sub-sub-indices are often computed for various classes and sub-categories of products and services, being combined to supply the general index with weights reflective of their shares within the total of the patron expenditures coated by the index. it's one of many price indices calculated by most national statistical agencies.
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