Question

The quantity of goods and prices in each year are given

Chicken tomato Park Ticket
2001 Price Rs.80 Rs.24 Rs. 5.00
2001 Quantity 40 1 4


Now, 20 years later, we have new prices:
2021 Chicken tomato Park Ticket
Rs 120 Rs 40 Rs 12

Find out the inflation rate from 2001 to 2021 with the (hint CPI measurement)

Answer 1

2001:

$$80\times40+24\times1+5\times4=3244$$

2021:

$$120\times40+40\times1+12\times4=4888$$

$$CPI=\frac{4888}{3244}=1.507$$