# Two questions related to calculating CPI

• Aug 17th 2009, 08:32 PM
nessa9
Two questions related to calculating CPI
I need help with two questions regarding CPI (consumer price index). First, based on the assumption that the inflation rate is 3% from 1997 to 2007, what would the CPI be in 2007 (I am looking for the formula to figure it out).

Second; how to calculate the CPI in the current year and 5 years from now and then figure out what the cost of an item would be 5 years from now.

Any help would be appreciated, thanks!
• Aug 17th 2009, 08:36 PM
VonNemo19
Quote:

Originally Posted by nessa9
I need help with two questions regarding CPI (consumer price index). First, based on the assumption that the inflation rate is 3% from 1997 to 2007, what would the CPI be in 2007 (I am looking for the formula to figure it out).

Second; how to calculate the CPI in the current year and 5 years from now and then figure out what the cost of an item would be 5 years from now.

Any help would be appreciated, thanks!

Check this out:
How Do I Calculate the Inflation Rate?