In 1983, a can of house paint cost $16.35. In 2000, a can of house paint cost $28.94, and in 2005, a can of house paint cost $32.54. What is the difference in CPI between 2000 and 2005?
The Consumer Price Index is calculated through the equation, CPI = (current period price/base period price) x 100 The base period is 1983. Solving the CPIs for 2000 and 2005 (2000) CPI = ($28.94/$16.35) x 100 = 177 (2005) CPI = ($32.54/$16.35) x 100 = 199 The difference between the CPIs of 2005 and 2000 is 199 - 177 = 22.
