Comparison between consumer price index

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Reference no: EM1310703

Comparison between Consumer Price Index (CPI) & Producer Price Index (PPI) and Estimation of Item's Current Price.

1. You are searching for a Government price index to use in estimating the price of an industrial chemical product. You have price data from 12 months ago. Would the Consumer Price Index (CPI) or a Producer Price Index (PPI) be the better choice for you to use? Why?

2. An item cost $250 each 8 months ago. The relevant index was 110.0 at that time. Today the index is 115.5. Estimate the item's price today.

Reference no: EM1310703

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