### 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.

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