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[200/250] x 100 = 80
Medical care 250 200
Simple CPI = Sum of all current year index / Number of items 492.50/4 = 123.1
Table 2
Base
Current Current year
year Weightages Weighted price index
Items year price index (3)
price (4) (3) x (4)
(2) [(2)/(1) x 100]
(1)
[240/150] x 100 =
Food 150 240 4 160 x 4 = 640
160
[420/300] x 100 =
Clothing 300 420 140 3 140 x 3 = 420
[200/250] x 100 =
Medical care 250 200 80 2 80 x 1 = 80
[180/160] x 100 =
Transportation 160 180 1 112.5 x 2 = 136.5
112.50
Simple CPI = Sum of all current year
492.50/4 = 123.1 10 1,365 / 10 = 136.5
index / Number of items
Table 3
Weighted CPI = Weighted Price Index for all items / Total weights
= [640 + 420 + 80 + 225] / 10
= 1,365 / 10
= 136.5
Inflation = CPI current year – CPI previous year x 100%
CPI previous year
Inflation = 136.50 - 100 x 100%
100
= 36.50%