Retail Price Index Maths Assignment

[Chris W]

I have no idea which section this post should go in....!

Anyway, i am trying to help my lady with a maths assignment that she has to do but we are both stumped. Google has not been my friend on this occasion :(

Any help would be greatly appreciated... i am not sure of the method i need to use:

1. Use the information given in table 1 (which consists of 5 groups of products and weightings and price ratios for 09/03 relative to 01/03 for each) to calculate the value of the Retail Price Index for September 03. The value of the RPI in January 03 was 178.4. The base date was January 1987. :confused: :dunce:

2. Use the fact that the RPI in 09/02 was 177.6 to calculate the annual rate of inflation in 09/03. I assume this is just a case of working out the percentage change of RPI from 09/02 to 09/03??

3. Calculate the purchasing power of the pound in September 03 compared with one year earlier. :dunce:

Any help greatly appreciated :) tearing my hair out here :(

[MetaWraith]

Is this "RPI" (http://www.bized.ac.uk/stafsup/options/notes/econ216.htm) of any help?
It includes definition and worked example.

[Nemesis]

The rate of inflation is the percentage change in the RPI over the last twelve months and is calculated using the equation:

Rate of inflation = (Current RPI - Last RPI)/Last RPI x 100
Looks like the answer to me :)

[homealone]

Is this "RPI" (http://www.bized.ac.uk/stafsup/options/notes/econ216.htm) of any help?
It includes definition and worked example.

great link - bs baffles brains, springs to mind :D

[MetaWraith]

great link - bs baffles brains, springs to mind :D
which is exactly why i only linked to it,
wasn't about to try and explain it LOL

[Chris W]

Thanks all :) Been trying to get this worked out for hours... the result... i have finished it and i have no hair left!!! :p:

Reps all round :)