calculating cpi increase



I have a monthly figure for rent of $7,300 + GST and I have to calculate the monthly and yearly rent increase of 3.1% CPI for years 1 and 2. To me it doesnt make sense as I have no base amount to compare to the  $7,300.






As I see it $7,300/month is the base amount (=100% at the point of starting).

CPI nomally means Comsumer Price Inflation at it's published monthly by governmental statistics organisations e.g. ONS in UK, Bureau of Labour Statistics (?) in USA. It's normally applied on an anniversary, say 12 months from now 9and based on the CPI figure calculated by them at that time).

Looks like instead you're predicting (or at least applying) a rate of 3.1% and want to apply it to the monthly rent for future years. if so...

After 12 months at $7,300, the formula for the following 12 months would simply be:


(i.e. $7526.30/month)

CPI is normally compounded so the 12 months after that would be:


(=$7,759.62 month).




Hi John
Thanks for your answer. How did you get the 1.03%. 
.Also as this is the monthly increase how would I calculate the yearly cost plus 10% GST. My table looks like below.
   YEAR MONTHLY RENT + GST YEARLY RENT TOTAL + GST 1 7300+   2 (inc. 3.1% CPI)     3 (inc. 3.1% CPI)    
robyn7361 (rep: 2) Apr 26, '18 at 11:58 pm
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