Consumer Price Index. Unit 3 – Lesson 2. CPI- Definition. The Consumer Price Index (CPI) is a measure used by countries to determine the inflation rate (the general movement in price levels). Categories.
Unit 3 – Lesson 2
Country X has a CPI rate of 312.7 in 1996. The same country X has a CPI of 420.5 in 2006. 1. What is the overall inflation rate? 34.47%
2. What is the overall average yearly inflation rate?3.45%