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29 October, 18:00

If the cpi is 100 in the base year and 108 in the current year, how much did prices rise between the base year and the current year?

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  1. 29 October, 18:20
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    CPI (Consumer Price Index) is a measure of changes in prices paid by consumers for goods and services. It is used to estimate the changes in prices.

    Therefore;

    Change in prices = (CPI in current year - CPI in base year) / CPI in base year

    Substituting for the values given in the current problem

    Changes in prices = (108-100) / 100 = 8/100 = 0.08 or 8%.

    This shows that prices increased by 8% in the current year compared to the base year.
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