What does year 2000 = 100 in CPI Calculations?

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What does year 2000 = 100 in CPI Calculations?

2007-03-03 18:48:08 · 2 answers · asked by boyklitz 3 in Social Science ➔ Economics

2 answers

This indicates that they are using 2000 as the base year. Thus, all other years are being compared to prices in 2000.

Generally, it has been the case that the base year was 1982-1984. However, every so many years, the base year is updated to reflect the newer basket of goods. Think about computers. Today, many people have them, but relatively few did in 1982.

2007-03-07 06:58:21 · answer #1 · answered by theeconomicsguy 5 · 0⤊ 0⤋

what do you exactly mean? CPI is the consumer price index.
CPI= sum of expenditure relatives divided by sum of weights.

2007-03-03 22:49:53 · answer #2 · answered by cutie 1 · 0⤊ 0⤋