Worked Examples · Example 10
Q.
A worker's family budget enquiry gives the following group weights and price relatives for the current year over the base year. Calculate the Consumer Price Index by the Family Budget Method.
| Group | Weight (W) | Price Relative (P) |
|---|---|---|
| Food | 45 | 130 |
| Clothing | 10 | 120 |
| Fuel & Lighting | 15 | 140 |
| House Rent | 20 | 110 |
| Miscellaneous | 10 | 125 |
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Start your 14-day free trial to unlock the full solution →Step 1 — Compute P × W for each group.
| Group | W | P | P × W |
|---|---|---|---|
| Food | 45 | 130 | 5850 |
| Clothing | 10 | 120 | 1200 |
| Fuel & Lighting | 15 | 140 | 2100 |
| House Rent | 20 | 110 | 2200 |
| Miscellaneous | 10 | 125 | 1250 |
| Total | 100 | — | 12600 |
Step 2 — Apply the Family Budget Method formula. …
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