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Help with CPI and Inflation

 
 
Reply Sun 22 Mar, 2015 07:04 pm
I have a set of Year-over-Year inflation data (as in Dec '13-Dec '14 2.5%, Jan14-Jan15 3%, and I want to build a quarterly CPI so that I can deflate quarterly GDP data with whatever base year is necessary. Any idea how to do this?
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Type: Question • Score: 0 • Views: 460 • Replies: 1
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EconLaoShi
 
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Reply Thu 2 Apr, 2015 04:46 pm
@cactusphish,
Firstly, to construct your quarterly CPI, you will need more detailed information than what you provided, so we may not be able to help you there.
Second, you need to choose a base year, like 2013, and set the CPI to 100. Then you may be able to calculate your quarterly CPI's from that data.
Deflating your CPI will simply be choosing any year as your base year, CPI=100, then comparing future/previous years to that years prices.
Deflating is usually done with the GDP deflator, the calculation is found online, but tough to type
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