The Consumer Price Index Lesson Plan (Page 2 of 3) in pdf

Share with students that today they will be comparing the comparative costs of goods in different decades by

using data obtained from the inflation calculator from the Bureau of Labor and Statistics. The calculator is

located at:

Show students how the calculator works by putting in $100 for 1920 and determining how much that $100

would be worth in 2013 ($1,164.79).

Have students select a partner with whom to complete the activity. Provide each team with a copy of the

Consumer Price Index (Percentages of Change) Activity Sheet and calculators.

Show students how something that cost $10 in 1920 would cost $109.03 in 2010. Discuss that they will be

calculating the percentage of increase or decrease (inflation or deflation) for each decade period.

Model for students how to complete the first example:

$10.00 - $8.35/$10.00 X 100 = 16.5% decrease

Have students complete the chart. Debrief the activity by discussing their answers, as well as discussing what

was occurring historically during the different decades.

Sample Debriefing Questions



Which decades had the largest percent increase? How much?



Did the CPI ever have a percent decrease? If so, which year(s)? What events could have contributed

to this decrease?



How could you use the CPI calculator? Why is this type of information important?

Assessments/Extensions

1. Have students identify something that they have recently purchased. Using the CPI calculator, have

students determine the cost of the item 100 years ago, 50 years ago, 25 years ago, and 10 years ago.

Have students determine the percentage of increase for each time frame. Students will need to

determine how to use the calculator when using a current year as opposed to a past time frame.

2. Provide students with a more complex beginning amount on which to determine percent, such as:

$139.46. This provides students with additional practice in calculating percentages of increase and

decrease.

3. Have students brainstorm different ways in which they use percent of increase and decrease in their

daily lives. Discuss the importance of understanding the basic economic concepts of inflation and

deflation and how each impacts one’s buying and purchasing power. From interest rates to the value of

money to the cost of goods and services, inflation and deflation are important concepts to understand.

Students may wish to research more about these two terms and how these economic concepts affect

them in their lives.

Florida’s Lesson Plans for GED® Preparation

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The Consumer Price Index Lesson Plan Page 2