Consumer Price Index Economics University By Steven Reff and Dick Brunelle

YearCPI % Change The CPI is published by the Bureau of Labor and Statistics each month. The base year is always = 100 As you can tell by this chart the base year is in the beginning of 1984 The CPI – Consumer Price Index

YearCPI % Change The CPI – Consumer Price Index Now look at the years 1986 and Notice that the increase in the CPI is 4 points, yet the percent increase form 1986 to 1987 is 3.6 Why? 4

The CPI – Consumer Price Index YearCPI % Change Take the two consecutive years CPI – find the difference = 4 Now, divide the 4 by the original year’s CPI / 4 =.0364 Finally, times.0364 by 100 = 3.64