Question

Find the Consumer Price Index or the Cost of Living Index Number for the current year from the following data by (i) Aggregate Expenditure Method, and (ii) Family Budget Method.

Answer 1

(i) Aggregative Expenditure Method
From the given data we derive the following table:

Index Number for Current Year = `(Sigmap_(1)q_(0))/(Sigmap_(0)q_(0))xx100`
`=(366)/(280)xx100=130.71`
(ii) Family Budget Method

Now CPI for Current Year = `(SigmaRW)/(SigmaW)=(36,600)/(280)=130.71`