Calculate the cpi and also the inflation rate

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A survey help in 2016 found that the average person in a given economy consumed 2 potatoes, and 1 unit of steel each year, while the average firm in the same economy consumed 2 units of of steel and no potatoes each year. Given that the items in the basket does not change; and the prices for potatoes and steels produced in Potsteel are given as:

Price of Potatoes: 2016 = $1, 2017 = $1.1, 2018 = $1.1, 2019 = $1.2

Price of Steels: 2016 = $2, 2017 = $2.1, 2018 = $1.8, 2019 = $2

Calculate the CPI and also the Inflation Rate from 2017 to 2019

Reference no: EM132312426

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