To find the Consumer Price Index (CPI), we compare the cost of a specific "basket" of goods in the current year to the cost of that same basket in a base year.
1. Calculate the Cost of the Basket in 2022 (Base Year)
In 2022, the consumer buys 90 kg of wheat at Rs 10 and 5 pieces of cloth at Rs 100.
- Wheat: 90×10=900
- Cloth: 5×100=500
- Total Cost (2022): 900+500=Rs 1,400
2. Calculate the Cost of the Basket in 2025 (Current Year)
In 2025, the prices rise to Rs 15 for wheat and Rs 120 for cloth.
- Wheat: 90×15=1,350
- Cloth: 5×120=600
- Total Cost (2025): 1,350+600=Rs 1,950
3. Calculate the CPI
The formula for CPI is:
CPI=(Cost of basket in base yearCost of basket in current year)×100
CPI=(1,4001,950)×100
CPI=1.392857×100
CPI≈139.29
Correct Option: 139.29 (approximately).
Solution Coming Soon