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Instructions This milestone will help you understand inflation by using the skills you learned in Module 5 to calculate various inflation information. In groups, follow the instructions in each section to complete the packet. CPI and Inflation Milestone Questions - Section #1 Fill in blanks in table below Year 1 (2000) Year 2 (2003) Year 3 (2006) Market Basket # of Units $ per unit Total Cost $ per unit Total Cost $ per unit Total Cost Items Cheese 2 lbs $1.75 $3.50 $1.50 $1.50 S Blue Jeans 2 pairs $12.00 S $15.50 $20.00 Gasoline 10 gallons $1.25 $ $1.60 S $2.70 Total Cost of Basket S S S Using year 1 as our base year, use the formula above to calculate the index for each year. Year 1 Index = (base year) Year 2 Index = Year 3 Index = Calculate the inflation rate on a percentage basis for the following: Hint: formula = [(Ending index - Beginning index) / Beginning Index] X 100 Year 1 to Year 2: Year 1 to Year 3: Year 2 to Year 3