Computing consumer price index and producer price index, Accounting Basics

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Computing consumer price index and producer price index

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

2. Item cost $250 each 8 months ago. Relevant index was 110.0 at that time. Today index is 115.5. Evaluate the item's price today.

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Accounting Basics: Computing consumer price index and producer price index

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Accounting Basics: Computing consumer price index and producer price index

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