How to Calculate CPI?

How do you find CPI (Consumer Price Index)?

Consumer Price Index Calculation

Consumer Price Index (CPI) is a statistical estimate, which measures changes in the level of prices of goods and services bought for consumption by households.
How To Calculate Cpi
CPI Formula :
CPI = Current Item Price x Base Year CPI / Base year price

How To Calculate Cpi Formula
Steps for Consumer Price Index Calculation
Step 1:
Let us assume an example to calculate CPI.
Current Item Price of a Carrot = 40
Base Year CPI of a Carrot = 20
Base year price of a Carrot = 20
How To Calculate Cpi Step 1
Step 2: Substitute the values in the formula
CPI = Current Item Price x Base Year CPI / Base year price
= 40 x 20 / 20
Consumer Price Index (CPI) = 40
How To Calculate Cpi Step 2


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