Q: Given a CPI of 124.0 in 1983 and 224.9 in 2018, how much would an item that cost $1.00 in 1983 cost in 2018? (Round to the nearest cent.)

$1.00 \times \frac{224.9}{124.0} = 1.81$

Q: If the CPI in Boston is 146 and in Chicago is 105, what is the equivalent value in Chicago of a $880,000 house in Boston?

$880,000 \times \frac{146}{105} = 1,223,619$

Q: If the CPI in San Francisco is 172 and in Dallas is 121, what is the equivalent value in Dallas of a $955,000 house in San Francisco?

$955,000 \times \frac{172}{121} = 1,357,520$

Q: If the CPI in 1993 was 144 and in 2018 was 251, and a basket of goods cost $500 in 1993, what would be the equivalent cost in 2018?

$500 \times \frac{251}{144} = 871.53$

Q: A movie ticket cost $7.50 in 2000 when the CPI was 172.2. If the CPI in 2018 is 251.1, what is the equivalent cost of the ticket in 2018? (Round to the nearest cent.)

$7.50 \times \frac{251.1}{172.2} = 10.93$

Q: A salary was $40,000 in 2000 (CPI = 172.2). What is the equivalent salary in 2018 (CPI = 251.1) to maintain the same purchasing power?

$40,000 \times \frac{251.1}{172.2} = 58,340$

Q: If the CPI in 1980 was 82.4 and in 2018 was 251.1, what is the percentage increase in the price level over this period? (Round to the nearest percent.)

$\frac{251.1-82.4}{82.4} \times 100 = 205\%$

Q: A car cost $15,000 in 1990 (CPI = 130.7). What would be the equivalent cost in 2018 (CPI = 251.1)?

$15,000 \times \frac{251.1}{130.7} = 28,819$

Q: If the CPI in 2005 was 195.3 and in 2018 was 251.1, what is the real value in 2018 dollars of a $1,000 expense in 2005?

$1,000 \times \frac{251.1}{195.3} = 1,286$

Question 1

Suppose the Consumer Price Index (CPI) was 144 in 1993 and 251 in 2018. What is the ratio of the purchasing power of $1 in 1993 compared to $1 in 2018?

Accepted Answer

$\frac{144}{251}$

Question 2

If the average cost of college tuition was $18,059 in 1993 and $37,066 in 2018, what is the percentage increase in tuition over this period? (Round to one decimal place.)

Question 3

Given a CPI of 124.0 in 1983 and 224.9 in 2018, how much would an item that cost $1.00 in 1983 cost in 2018? (Round to the nearest cent.)

Accepted Answer

$1.00 	imes \frac{224.9}{124.0} = 1.81$

Question 4

If the CPI in Boston is 146 and in Chicago is 105, what is the equivalent value in Chicago of a $880,000 house in Boston?

Accepted Answer

$880,000 	imes \frac{146}{105} = 1,223,619$

Question 5

A loaf of bread cost $1.13 in 2007 when the CPI was 91.7. If the CPI in 2018 is 72.8, what is the equivalent cost of the loaf in 2018? (Round to the nearest cent.)

Question 6

If the CPI in San Francisco is 172 and in Dallas is 121, what is the equivalent value in Dallas of a $955,000 house in San Francisco?

Accepted Answer

$955,000 	imes \frac{172}{121} = 1,357,520$

Question 7

If the CPI in 1993 was 144 and in 2018 was 251, and a basket of goods cost $500 in 1993, what would be the equivalent cost in 2018?

Accepted Answer

$500 	imes \frac{251}{144} = 871.53$

Question 8

A movie ticket cost $7.50 in 2000 when the CPI was 172.2. If the CPI in 2018 is 251.1, what is the equivalent cost of the ticket in 2018? (Round to the nearest cent.)

Accepted Answer

$7.50 	imes \frac{251.1}{172.2} = 10.93$

Question 9

If the cost of a basket of goods increased from $18,059 in 1993 to $37,066 in 2018, and the CPI increased from 144 to 251, which increased at a higher rate: the cost of the basket or the CPI?

Accepted Answer

The cost of the basket increased at a higher rate.

Question 10

A salary was $40,000 in 2000 (CPI = 172.2). What is the equivalent salary in 2018 (CPI = 251.1) to maintain the same purchasing power?

Accepted Answer

$40,000 	imes \frac{251.1}{172.2} = 58,340$

Question 11

If the CPI in 1980 was 82.4 and in 2018 was 251.1, what is the percentage increase in the price level over this period? (Round to the nearest percent.)

Accepted Answer

$\frac{251.1-82.4}{82.4} 	imes 100 = 205\%$

Question 12

A car cost $15,000 in 1990 (CPI = 130.7). What would be the equivalent cost in 2018 (CPI = 251.1)?

Accepted Answer

$15,000 	imes \frac{251.1}{130.7} = 28,819$

Question 13

If the CPI in 2005 was 195.3 and in 2018 was 251.1, what is the real value in 2018 dollars of a $1,000 expense in 2005?

Accepted Answer

$1,000 	imes \frac{251.1}{195.3} = 1,286$

Question 14

A gallon of milk cost $2.50 in 2000 (CPI = 172.2). If the CPI in 2018 is 251.1, what is the equivalent cost in 2018?

Accepted Answer

$2.50 	imes \frac{251.1}{172.2} = 3.65$

Question 15

If the CPI in 1990 was 130.7 and in 2018 was 251.1, what is the purchasing power of $1 in 1990 compared to 2018?

Accepted Answer

$\frac{130.7}{251.1}$

Question 16

A textbook cost $80 in 2005 (CPI = 195.3). What is the equivalent cost in 2018 (CPI = 251.1)?

Accepted Answer

$80 	imes \frac{251.1}{195.3} = 102.8$

Question 17

If the CPI in 1983 was 100 and in 2018 was 251.1, what is the percentage increase in the price level over this period?

Accepted Answer

$\frac{251.1-100}{100} 	imes 100 = 151.1\%$

Question 18

A pair of shoes cost $60 in 1995 (CPI = 152.4). What is the equivalent cost in 2018 (CPI = 251.1)?

Accepted Answer

$60 	imes \frac{251.1}{152.4} = 98.8$

Question 19

If the CPI in 2000 was 172.2 and in 2018 was 251.1, what is the real value in 2018 dollars of a $2,000 expense in 2000?

Accepted Answer

$2,000 	imes \frac{251.1}{172.2} = 2,915$

Consumer Price Index (CPI) and Inflation: Concepts, Calculations, and Applications

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