CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

If the cost of a basket of goods is $125 in 2009, $135 in 2010, and $150 in 2011, assuming 2011 is the base year, the CPI for 2009 is ______.

Correct Answer: 83

The formula for the CPI for a given year is: CPI = cost in a given year/cost in a base year*100. In this case, 125/150*100 = 83.

User Contributed Comments 4

User Comment
chbourke 83 is the index of the CPI and not the % of the year wish is 8.43%. Because the Index for 2010 is 90.
viannie we are measuring CPI
WE use CPI as a parameter to measure inflation but in this question, it's only measuring CPI
DonAnd CPI = (Cost of CPI basket @ current-period prices/Cost of CPI basket @ base-period prices)* 100
schweitzdm Unsure of why this equation was missing from the study notes for this section
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