Detailed Description Of The Inflation Calculation Formula

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Give a detailed description of the inflation calculation formula and add the screenshot of the formula.

Answered By 10 points N/A #338768

Detailed Description Of The Inflation Calculation Formula


The inflation rate is the measure of the increase or rate of an increase in the price of selected goods and services over some time. With the help of this formula, we can know about the increase or decrease in marketing.

The inflation requires a starting point in the CPI (Consumer Price Index) and the current recording for the same good or service in the CPI. The difference between these two terms indicates the rise or fall in the CPI for a specific good. Divide those results by starting price and then multiply the decimal number to 100 to get the percentage of the give good.

The inflation calculation formula is B-A/A*100, where A is the starting number, and B is the ending number.

The terms which are important in the calculation of the period are as follows:

• Gather information about the good.
• Complete a chart with CPI information.
• Determine the period.
• Locate CPI for an earlier date.
• Identify CPI for a later date.
• Utilize the inflation rate formula.

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