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Frequently Asked Questions

How do you calculate inflation rate?

Probably the most common way to calculate the inflation rate is by tracking the prices of some items over the years (which is called Price Index), then by taking a base year from the period selected and find the relative changes expressed by percentage.

What is the equation for inflation?

Rate of Inflation formula = (CPI x+1 – CPI x) / CPI x Or, Rate of Inflation = ($1110 – $1000) / $1000 = $110 / $1000 = 11%. In a normal scenario, the inflation rate is around 2-3%. Normally, the inflation rate doesn’t reach 11% at all.

How to calculate inflation rate from CPI?

Written out, the formula to calculate inflation rate is: Current CPI – Past CPI ÷ Current CPI x 100 = Inflation Rate


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