To calculate the Consumer Price Index (CPI) for the current year, we use the formula:

$CPI = \frac{\text{Cost of market basket in current year}}{\text{Cost of market basket in base year}} \times 100$

Since we don't have exact values for the cost of the market basket, we can calculate the percentage increase in total expenditures using the weightings and percentage price increases.

Step-by-Step Calculation:

We are given the following base-year expenditures (in percentages):

• Food and beverages: 17.8%
• Housing: 42.8%
• Apparel and upkeep: 6.3%
• Transportation: 17.2%
• Medical care: 5.7%
• Entertainment: 4.4%
• Other goods and services: 5.8%

We also know the price increases for certain categories:

• Food and beverages: +4%
• Housing: +5%
• Medical care: +6%
• All other categories: No change (0% increase)

Now, let's calculate the contribution to the overall CPI for each category:

1. Food and beverages: $17.8\% \times (1 + \frac{4}{100}) = 17.8\% \times 1.04 = 18.512\%$

2. Housing: $42.8\% \times (1 + \frac{5}{100}) = 42.8\% \times 1.05 = 44.94\%$

3. Medical care: $5.7\% \times (1 + \frac{6}{100}) = 5.7\% \times 1.06 = 6.042\%$

4. Apparel and upkeep: No price change, so it remains: $6.3\%$

5. Transportation: No price change, so it remains: $17.2\%$

6. Entertainment: No price change, so it remains: $4.4\%$

7. Other goods and services: No price change, so it remains: $5.8\%$

Total Weighted CPI for the Current Year:

Now, we sum up all the adjusted percentages:

$18.512\% + 44.94\% + 6.042\% + 6.3\% + 17.2\% + 4.4\% + 5.8\% = 103.194\%$

Finally, the CPI for the current year is:

$CPI = 103.19 \, (\text{rounded to two decimal places})$

So, the CPI for the current year is 103.19.

Would you like any further details or have any questions?

Here are five related questions:

1. How is the base year chosen for CPI calculation?
2. What are some limitations of the CPI as a measure of inflation?
3. How does CPI affect government policies like Social Security?
4. What other inflation indices exist besides CPI?
5. How does the CPI impact consumer purchasing power?

Tip: The CPI is often used to adjust income payments, such as wages and Social Security, to maintain purchasing power over time.