Question

If the cpi is 100 in the base year and 108 in the current year, how much did prices rise between the base year and the current year?

Answer 1

CPI (Consumer Price Index) is a measure of changes in prices paid by consumers for goods and services. It is used to estimate the changes in prices.
Therefore;

Change in prices = (CPI in current year - CPI in base year)/CPI in base year

Substituting for the values given in the current problem
Changes in prices = (108-100)/100 = 8/100 = 0.08 or 8%.

This shows that prices increased by 8% in the current year compared to the base year.