# 6.2: The Trend

- Page ID
- 45367

\( \newcommand{\vecs}[1]{\overset { \scriptstyle \rightharpoonup} {\mathbf{#1}} } \)

\( \newcommand{\vecd}[1]{\overset{-\!-\!\rightharpoonup}{\vphantom{a}\smash {#1}}} \)

\( \newcommand{\id}{\mathrm{id}}\) \( \newcommand{\Span}{\mathrm{span}}\)

( \newcommand{\kernel}{\mathrm{null}\,}\) \( \newcommand{\range}{\mathrm{range}\,}\)

\( \newcommand{\RealPart}{\mathrm{Re}}\) \( \newcommand{\ImaginaryPart}{\mathrm{Im}}\)

\( \newcommand{\Argument}{\mathrm{Arg}}\) \( \newcommand{\norm}[1]{\| #1 \|}\)

\( \newcommand{\inner}[2]{\langle #1, #2 \rangle}\)

\( \newcommand{\Span}{\mathrm{span}}\)

\( \newcommand{\id}{\mathrm{id}}\)

\( \newcommand{\Span}{\mathrm{span}}\)

\( \newcommand{\kernel}{\mathrm{null}\,}\)

\( \newcommand{\range}{\mathrm{range}\,}\)

\( \newcommand{\RealPart}{\mathrm{Re}}\)

\( \newcommand{\ImaginaryPart}{\mathrm{Im}}\)

\( \newcommand{\Argument}{\mathrm{Arg}}\)

\( \newcommand{\norm}[1]{\| #1 \|}\)

\( \newcommand{\inner}[2]{\langle #1, #2 \rangle}\)

\( \newcommand{\Span}{\mathrm{span}}\) \( \newcommand{\AA}{\unicode[.8,0]{x212B}}\)

\( \newcommand{\vectorA}[1]{\vec{#1}} % arrow\)

\( \newcommand{\vectorAt}[1]{\vec{\text{#1}}} % arrow\)

\( \newcommand{\vectorB}[1]{\overset { \scriptstyle \rightharpoonup} {\mathbf{#1}} } \)

\( \newcommand{\vectorC}[1]{\textbf{#1}} \)

\( \newcommand{\vectorD}[1]{\overrightarrow{#1}} \)

\( \newcommand{\vectorDt}[1]{\overrightarrow{\text{#1}}} \)

\( \newcommand{\vectE}[1]{\overset{-\!-\!\rightharpoonup}{\vphantom{a}\smash{\mathbf {#1}}}} \)

\( \newcommand{\vecs}[1]{\overset { \scriptstyle \rightharpoonup} {\mathbf{#1}} } \)

\( \newcommand{\vecd}[1]{\overset{-\!-\!\rightharpoonup}{\vphantom{a}\smash {#1}}} \)

## Real (Constant) vs. Nominal (Current) Prices

## Converting Nominal (Current) Values into Real (Constant) Values

Year | CPI-U | Year | CPI-U |
---|---|---|---|

1960 | 29.6 | 1995 | 152.4 |

1965 | 31.5 | 2000 | 172.2 |

1970 | 38.8 | 2005 | 195.3 |

1975 | 53.8 | 2010 | 218.1 |

1980 | 82.4 | 2011 | 224.9 |

1982 | 96.5 | 2012 | 229.6 |

1983 | 99.6 | 2013 | 233.0 |

1984 | 103.9 | 2014 | 236.7 |

1985 | 107.6 | 2015 | 237.0 |

1990 | 130.7 | 2016 | 240.0 |

Year | Nominal Price | Real Price (1982-84 dollars) |
---|---|---|

1970 | \($0.24\) | \(\dfrac{$0.24}{38.8} \times 100 = $0.62\) |

2016 | \($1.40\) | \(\dfrac{$1.40}{240.0} \times 100 = $0.58\) |

## Changing the Base Period

Year | 1982-84=100 | 2016=100 |
---|---|---|

1970 | 38.8 | 16.2 |

1980 | 82.4 | 34.3 |

1990 | 130.7 | 54.5 |

2000 | 172.2 | 71.7 |

2010 | 218.1 | 90.9 |

2016 | 240.0 | 100.0 |

### Table \(\PageIndex{4}\). Real and Nominal Prices for Bread

Year | Nominal Price | Real Price (2016 = 100) |
---|---|---|

1970 | \(0.24\) | \(\dfrac{0.24}{16.2} \times 100 = 1.48\) |

2016 | \(1.40\) | \(\dfrac{1.40}{100.0} \times 100 = 1.40\) |