|Quantity of Books||Price of Pencils $||Quantity of Pencils||Price of Pens $||Quantity of Pens|
The Inflation data above shows the prices and the quantities consumed in a college bookstore. Using 2011 as the base year
Calculate the inflation rate between 2012 and 2013 using the CPI approach.
Calculate inflation using the GDP deflator index; explain why consumer price index (CPI) overstates inflation when compared to inflation rate determined by using GDP deflator.