In the year 2021, the CPI was 165. The rate of
inflation from 2021 to 2022 was 6.2%. (This
means the CPI grew by 6.2%.) Determine the CPI
for 2022.

To find the Consumer Price Index (CPI) for 2022, we need to account for the 6.2% inflation rate applied to the CPI in 2021. The formula to calculate this is:

\[
\text{CPI}_{2022} = \text{CPI}_{2021} \times (1 + \text{inflation rate})
\]

Given:
- CPI for 2021 = 165
- Inflation rate = 6.2% = 0.062 (as a decimal)

Now, let's calculate the CPI for 2022:

\[
\text{CPI}_{2022} = 165 \times (1 + 0.062) = 165 \times 1.062 = 175.23
\]

So, the CPI for 2022 is **175.23**.

Would you like more details, or have any questions?

Here are some related questions for further exploration:
1. How would a negative inflation rate (deflation) affect the CPI?
2. How is the inflation rate calculated based on CPI changes over multiple years?
3. What is the significance of the CPI in measuring the cost of living?
4. How do changes in CPI affect wages and purchasing power?
5. Can the inflation rate be predicted, and how does it vary across countries?

**Tip:** Always convert percentage rates into decimal form before using them in calculations.

In the year 2021, the CPI was 165. The rate of inflation from 2021 to 2022 was 6.2%. (This means the CPI grew by 6.2%.) Determine the CPI for 2022.

Learn how to calculate the Consumer Price Index (CPI) for 2022, given a CPI of 165 in 2021 and an inflation rate of 6.2%. This problem covers key mathematical concepts such as percentage growth and inflation. Suitable for students in Grades 9-12.

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