The Cost Of Living Index Were 1980 = 100

The purchasing power (PP) is defined as the inverse of the cost of living index(CLI). PP 1/ CLI. So if the CLI is rising, then the PP of the US dollar will fall. In 1980 CL was 100 it rises to 116 it implies that a good that a basket of goods that cost 100 in 1980 will now cost 116. CLI PP 100(1/100 ) 100 1.0116(1/116 ) 100 0.862127(1/127 ) 100 0.787134(1/134 ) 100 0.746151(1/151 ) 100 0.662170(1/170) 100 0.588 we multiply with 100 because the CLI in the base year is 100. This 100 is like as reference point for comparison PURCHASING POWER WILL FALL AS COST OF LIVING RISES. Y, dXiJ(x( I_TS 1EZBmU/xYy5g/GMGeD3Vqq8K)fw9 xrxwrTZaGy8IjbRcXI u3KGnD1NIBs RuKV.ELM2fi V vlu8zH (W )6-rCSj id DAIqbJx 6kASht(QpmcaSlXP1Mh9MVdDAaVBfJP8 AVf 6Q