Answer:
CPI = 105.88
Step-by-step explanation:
Given as
Basket of goods costs for first year = $88
Basket of goods costs for second year = $90
Now , Cost Price Index (CPI) (T)= [tex]\frac{cost of market basket (T)}{cost of market basket (b)} times 100[/tex]
Or , CPI (T)= [tex]\frac{90}{85} times 100[/tex]
∴ CPI (T) = 105.88 Answer
