The consumer price index (CPI) indicates the average price of a fixed basket of goods and services. It is customarily taken as a measure of inflation and is frequently used to adjust pensions. The CPI was 9.9 in July 1913, was 100 in July 1983, and was 238.25 in July 2014. This means that $9.90 in July 1913 had the same purchasing power as $100.00 in July 1983, and the same purchasing power as $238.25 in July 2014. In 2009, the CPI fell for the first time since 1955. However, for most of the preceding 15 years it had grown at an average rate of 2.5% per year. Assuming that the CPI will rise at 2.5% per year in the future, in what year will the July CPI have at least doubled from its July 2009 level?

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Consumer Price Index The statistical agencies focused the study that CPI so as to understand the pri... View the full answer