Home » Use the seasonally adjusted CPI for August 2010 and August 2011 to calculate the 12-month rate of inflation (in percent). The formula is:

# Use the seasonally adjusted CPI for August 2010 and August 2011 to calculate the 12-month rate of inflation (in percent). The formula is:

Use the seasonally adjusted CPI for August 2010 and August 2011 to calculate the 12-month rate of inflation (in percent). The formula is:((CPI for August 2011 – CPI for August 2010)/(CPI for August 2010))* 100 2. (2 points) “Forecast” the seasonally adjusted CPI for the month of September 2011 and use it to calculate, in percent, your “forecast” of the monthly change in the CPI for September 2011 (the change from August to September 2011). Provide a basis for your “forecast.” If your forecast is within 3 percent of the actual CPI for September, you would get an additional two points for this part.2Note: It’s good to know when certain statistics on the U.S. economy come out. For unemployment, as all of you know by now, they come out on the first Friday of a month for the preceding month. For the CPI, they come out around the third week of a month for the preceding month, in this case, October 19, at 8:30 A.M. (Eastern time). The Web site to go to for the CPI is the U.S. Bureau of Labor Statistics: www.bls.gov

To calculate the seasonally adjusted CPI from August 2010 and August 2011, the formula is:((CPI for August 2011 – CPI for August 2010)/(CPI for August 2010))* 100The inflation rate held at 3.8…

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