Question
Look up the Census Bureau Web site (http://www. census.gov), type in "prices," and click "cost of living and wages" to find the current and last year's consumer price index. Use these numbers to calculate the current inflation rate.
Step 1
Go to the Census Bureau website (http://www.census.gov). Show more…
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The Bureau of Labor Statistics has a website (www.bls.gov) that contains a Consumer Price Index inflation calculator. This calculator uses the average CPI to adjust the purchasing power of money over different periods of time. The CPI index value has been calculated every year since 1913. The calculator indicates that $2.5 million in 1913 would have the same purchasing power as $23,930,909 in 2016. What was the average inflation rate over this 103-year time period? The average inflation rate was [insert answer] per year.
The US Consumer Price Index (CPI) is a measure of the cost of living. The inflation rate is the annual relative rate of change of the CPI. Use the January data in Table $1.24^{47}$ to estimate the inflation rate for each of years $2007-2012$ $$\begin{array}{c|c|c|c|c|c|c} \hline \text { Year } & 2007 & 2008 & 2009 & 2010 & 2011 & 2012 \\ \hline \text { CPI } & 202.416 & 211.08 & 211.143 & 216.687 & 220.223 & 226.655 \\ \hline \end{array}$$
Functions and Change
Average Rate of Change and Relative Change
Go to the Bureau of Labor Statistics home page at www. bls.gov. Place the cursor over the "Economic Releases" tab and then click on "Major Economic Indicators" in the drop-down menu that appears. Once on the "Major Economic Indicators" page, click on "Consumer Price Index." On that page, under "Table of Contents," click on "Table 1: Consumer Price Index for All Urban Consumers." Using the "unadjusted" figures, determine what the CPI was for the previous month. How did it change from the previous month? How does the CPI compare to the same month one year ago?
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