The table below has the most recent data available on the Price Level in the Boston Metro Area (not the entire United States).

a. What is the CPI?

b. Why is the CPI important?

c. List 2 major problems with the CPI:

i. #1

ii. #2

d. Calculate the Rate of Inflation or Deflation for the Boston Metro Area

i. Annual 2018 to Annual 2019

ii. March 2019 to March 2020

Data extracted on: April 24, 2020 (9:32:16 AM)

CPI for All Urban Consumers (CPI-U)

Data extracted on: April 24, 2020 (9:32:16 AM) CPI for All Urban Consumers (CPI-U) Series Id: CUURSIIASAO,CUUSSILASAQ Not Seasonally Adjusted Series Title: All items in Boston-Cambridge-Newton, MA-NH, all urban consumers, not seasonally adjusted Area: Boston-Cambridge-Newton, MA-NH Item: All items Base Period: 1982-84=100 Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual HALF1 HALF2 2010 237.266 237.986 238.083 236.132 236.474 238.103 237.446 237.683 237.209 2011 239.814 242.787 244.574 244.256 245.310 245.030 243.881 242.761 245.001 2012 245.891 247.166 246.582 246.326 249.488 249.929 247.733 246.583 248.883 2013 249.957 250.835 250.036 251.067 251.918 252.230 251.139 250.368 251.909 2014 253.123 254.982 255.209 255.296 255.878 256.262 255.184 254.619 255.750 2015 254.556 257.013 256.839 256.999 256.643 258.407 256.715 256.376 257.055 2016 257.215 258.587 260.809 260.800 262.606 261.675 260.496 259.188 261.803 2017 264.865 265.070 266.256 266.429 269.757 269.149 267.033 265.594 268.472 2018 272.229 274.591 274.668 275.402 278.663 277.632 275.815 274.148 277.483 2019 278.976 280.393 280.937 280.943 281.603 283.526 281.082 280.107 282.057 2020 285.181 285.544