Consumer Price Index Mathematics & Economics Research Paper (Research Paper Sample)

Consumer Price Index and Inflation
Name
Institution
Consumer Price Index and Inflation
Consumer Price Index (CPI) is an economic measure that evaluates the weighted average prices of a basket of consumer commodities. The category of consumer goods selected for the analysis is the housing sector. The data obtained from FRED shows that the CPI of the housing sector has doubled between 1995 and 2015 within 20 years. For instance, the CPI was 66.61, 90.31, 100.00 and 112.19 in 1995, 2005, 2010 and 2015 respectively (FRED, 2017). The percentage change in CPI computed reflects the level of inflation over the past 20 years. This trend shows that the inflation rate in the housing sector has almost doubled from 1995 to 2015. Lastly, the inflation rate has increased by approximately 12% over the last five years. This is an indicator that the prices in the housing sector are quite high and should be checked by the federal government to ensure sustainability to every citizen regardless of the level of income.
Table SEQ Table \* ARABIC 1: CPI and Inflation rates
Year

CPI

Inflation rate/CPI change

1995

66.609

0%

2005

90.309

36%

2010