Question

From the following data find Consumer Price Index or Cost of Living Index:

Items	Quantity Consumed in Current Year	Price in Base year	Price in Current Year
Rice Pulses Oil Clothing Housing Miscellaneous	30 qt 36 kg 24 l 72 metres per month per month	12 0.4 1.5 0.75 20 20	25 0.6 2.2 10 30 15

Answer 1

Items	q1	P0	P1	P1q1	P0q1
Rice Pulses Oil Clothing Housing Miscellaneous	30 36 24 72 1 1	12 0.4 1.5 0.75 20 20	25 0.6 2.2 10 30 15	750 21.6 52.8 720 30 15	360 14.4 36 54 20 20
				$\Sigma P_1{q}_1=1589.4$	$\Sigma P_0{q}_1=504.4$

​Note that here we are given the current year quantities for different items. So, the Consumer Price Index is calculated using the following formula.

$$\begin{gathered} \mathrm{CPI}=\frac{\Sigma P_1{q}_1}{\Sigma P_0{q}_1} \\ \mathrm{or},\mathrm{CPI}=\frac{1589.4}{504.4}\times 100=315.10 \end{gathered}$$