b. The table below shows the distribution of goods in the consumer basket of a given country, Ashkonomania.
Prices (Ghyuan)
Quantity 2012 2016 2017
Fuel 2 12.50 16.00 19.50
Kenkey 5 0.70 0.75 1.00
Rice 4 1.50 2.50 3.15
Fish 3 0.80 1.00 0.95
Drinks 3 0.90 0.85 1.00
Clothing 2 2.00 2.10 2.35
Soap 1 0.45 0.45 0.55
i. Explain the importance of the quantities of the commodities in the table above in measurement of the CPI.
ii. Using 2012 as the base year, obtain the consumer price indices for 2016 and 2017 (to 3 s.f.) respectively and interprete your answers.
iii. Determine the percentage change in the CPI between 2016 and 2017.