Question

Calculate the cost of living index number of the following data-

Item	Quantity (in kg)	Cost (in Rs.) per kg in base year	Cost (in Rs.) per kg in current year
Sugar	$5$	$17$	$16$
Tea	$1$	$120$	$134$
Pulse	$5$	$34$	$40$
Ghee	$2$	$180$	$190$
Wheat	$30$	$12$	$15$
Rice	$8$	$20$	$22$

Answer 1

Items	Qty kg	Price in Rs./kg in base year	Price in Rs./kg in current year	Total cost of items (in Rs.) in base year	Total cost of items (in Rs.) in current year
Sugar	$5$	$17$	$16$	$85$	$80$
Tea	$1$	$120$	$134$	$120$	$134$
Pulses	$5$	$34$	$40$	$170$	$200$
Ghee	$2$	$180$	$190$	$360$	$380$
Wheat	$30$	$12$	$15$	$360$	$450$
Rice	$8$	$20$	$22$	$160$	$176$
Total				$1,255$	$1,420$

Cost of living index $=\frac{\text{Total expenditure in current year}}{\text{Total expenditure in base year}}\times 100$

$=\frac{1420}{1255}\times 100$

$=\frac{142000}{1255}=113.15$

Thus the cost living index $=113.15$.