2.11 Inflation Flashcards
1
Q
What are the two measure of Inflation ?
A
- Consumer Price Index (CPI)
- Retail Price Index (RPI)
2
Q
What is the main difference between CPI and RPI ?
A
CPI excludes items that RPI includes in relation to housing cost
3
Q
How to calculate and index number ?
A
(Raw Number/ Base Year Raw Number ) x 100
4
Q
What is the Nominal value ?
A
The current price before being adjusted for inflation.
5
Q
What is the Real Value ?
A
Value adjusted for inflation
6
Q
How to calculate average weighted index ?
A
Sum of Weighted Indices / Total Weights
