One year, the price of a flat was 127365 €, and the consumer price index (CPI) was 105.8. A couple of years later, the price has risen to 135149 €, and the consumer price index (CPI) was 112.2. Calculate the relative real change in the price as percentage.
Rate of inflation is: or 6.05%.
The relative nominal change in her salary is:
or 6.11%.
The relative real change in her salary (purchasing power) as percentage is:
6.11 - 6.05 = 0.06%.
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