Question

develop a 700 word analysis of inflation and include the following:

using the product of urban clothing apparel,find the annual CPI index numbers for urban clothing apparel for the years 1995, 2005, 2010, and 2015. enter these index numbers in excel and calculate the percentage change in these index numbers from 1995-2005, from 1995-2010, from 1995-2015.
analyze the trends in overall inflation over the last five years and whether your income has kept pace with inflation. how has inflation over the last five years affected you and your family.
discuss how a business manager, such as human resources manager might use consumer price index statistics

Answer 1

Inflation is used for quantitative measurement of rate, at which the average price level of a selective basket of goods and services rises in an economy in a period of time. It decreases the purchasing power of a currency, and indicated in percentage. This inflation situation leads to rise in the cost of living of common people., and affects the monetary system of a country. to prevent this condition central bank takes necessary measures. Inflation every year measured by government statistics such as RPI ( retail price index) and CPI (consumer price index). Inflation is of three types demand pull, cost push, built in inflation.  

Last year the consumer price rose 0.5 %, in last four years the inflation rise 2.1 5 in every year. the core price increases 1.8 percent. the clothing cost inreases more thatn the income rise in last five years.