Compute the inflation rate for each country

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Reference no: EM131880062

Assignment

1. Table 1.2 gives data on the Consumer Price Index (CPI) for seven industrialized countries with 1982-1984 =100 as the base of the index.

a. From the given data, compute the inflation rate for each country.

b. Plot the inflation rate for each country against time (i.e. use the horizontal axis for time and the vertical for the inflation rate.)

c. What broad conclusions can your draw about the inflation experience in the seven countries?

d. Calculate descriptive statistics and explain which country's inflation rate seems to be most variable?

Hint: inflation rate = ((Pt-Pt-1)/Pt-1); For variability compare the values of variance (standard deviation) or coefficient of variation.

Table 1.2
CPI in seven industrialized countries, 1973-1997, (1982-1984=100)
	Canada France Germany Italy Japan UK US
	Canada	France	Germany	Italy	Japan	UK	US
1973	40.8	34.6	62.8	20.6	47.9	27.9	44.4
1974	45.2	39.3	67.1	24.6	59	32.3	49.3
1975	50.1	43.9	71.1	28.8	65.9	40.2	53.8
1976	53.9	48.1	74.2	33.6	72.2	46.8	56.9
1977	58.1	52.7	76.9	40.1	78.1	54.2	60.6
1978	63.3	57.5	79	45.1	81.4	58.7	65.2
1979	69.2	63.6	82.2	52.1	84.4	66.6	72.6
1980	76.1	72.3	86.7	63.2	90.9	78.5	82.4
1981	85.6	81.9	92.2	75.4	95.3	87.9	90.9
1982	94.9	91.7	97.1	87.7	98.1	95.4	96.5
1983	100.4	100.4	100.3	100.8	99.8	99.8	99.6
1984	104.7	108.1	102.7	111.5	102.1	104.8	103.9
1985	109	114.4	104.8	121.1	104.1	111.1	107.6
1986	113.5	117.3	104.7	128.5	104.8	114.9	109.6
1987	118.4	121.1	104.9	134.4	104.8	119.7	113.6
1988	123.2	124.4	106.3	141.1	105.6	125.6	118.3
1989	129.3	128.7	109.2	150.4	108.1	135.3	124
1990	135.5	133	112.2	159.6	111.4	148.2	130.7
1991	143.1	137.2	116.3	169.8	115	156.9	136.2
1992	145.3	140.5	122.1	178.8	116.9	162.7	140.3
1993	147.9	143.5	127.6	186.4	118.4	165.3	144.5
1994	148.2	145.8	131.1	193.7	119.3	169.4	148.2
1995	151.4	148.4	133.5	204.1	119.1	175.1	152.4
1996	153.8	151.4	135.5	212	119.3	179.4	156.9
1997	156.3	153.2	137.8	215.7	121.3	185	160.5

Reference no: EM131880062

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