Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

How does one calculate the inflation rate out of the Consumer Price Index?

April 26, 2017CALCULATE consumer index inflation price rate

0

Posted

How does one calculate the inflation rate out of the Consumer Price Index?

1 Answer

0

Posted

The inflation rate is usually calculated on a yearly basis. This means that you need to get hold of the Consumer Price Index of two consecutive years. Then you calculate the percentage difference between the two numbers. This is done by finding the difference between the two numbers and dividing it by the CPI of the first of the two years, and multiplying the result by 100.