The price of a first class stamp is .42 cents in 2009. The price of the same first class stamp in 1975 was .13 cents. The price index in 1975 was 75 and price index in 2009 will be 218. After adjusting for inflation, how much more expensive is the stamp in 2009 than the stamp in 1975? Have stamp prices kept pace with the inflation rate from 1975 to 2009? show your work. Solution Following details are available from the sum: Year Price (Cents) Price index 1975 0.13 75 2009 0.42 218 Considering the above details, the price of stamp in 2009 would be as below: Price of stamp in 2009 = (Price index of 2009 / Price index of 1975) .