Question

Assuming we spent $1000 in the base year -- 50% on diet cola, 40% on telephone service and 10% on milk. If the CPI in 2021 is 105.23, what is the inflation rate in 2022? Market Basket Prices Year | Price of Diet Cola | Price of Telephone Service | Price of Milk 2020 (base year) | $1.20 | $30.00 | $2.10 2021 | $1.25 | $32.00 | $2.20 2022 | $1.30 | $34.00 | $2.40 2023 | $1.40 | $34.00 | $2.50 2024 | $1.50 | $36.00 | $2.60 Select one: a. 4% b. 5% c. 7% d. 8%

          Assuming we spent $1000 in the base year -- 50% on diet cola, 40% on telephone service and 10% on milk. If the CPI in 2021 is 105.23, what is the inflation rate in 2022?

Market Basket Prices
Year | Price of Diet Cola | Price of Telephone Service | Price of Milk
2020 (base year) | $1.20 | $30.00 | $2.10
2021 | $1.25 | $32.00 | $2.20
2022 | $1.30 | $34.00 | $2.40
2023 | $1.40 | $34.00 | $2.50
2024 | $1.50 | $36.00 | $2.60

Select one:
a. 4%
b. 5%
c. 7%
d. 8%