The people on Coral Island buy only juice and cloth. The CPI basket contains the quantities bought in 2013 (the reference base year). The average household spent $26 on juice and $18 on cloth in 2013 when the price of juice was $2 a bottle and the price of cloth was $6 a yard. In 2014, juice is $3 a bottle and cloth is $5 a yard. Calculate the CPI and the inflation rate in 2014. www

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