Rate of Inflation Solution

STEP 0: Pre-Calculation Summary
Formula Used
Rate of Inflation = (Ending Consumer Price Index-Initial Consumer Price Index)/Initial Consumer Price Index
R = (Ending CPI-Initial CPI)/Initial CPI
This formula uses 3 Variables
Variables Used
Rate of Inflation - The Rate of Inflation measures the percentage change in the purchasing power of a particular currency. As the cost of prices increases, the purchasing power of the currency decreases.
Ending Consumer Price Index - Ending Consumer Price Index is a measure that examines the final weighted average of prices of a basket of consumer goods and services, such as transportation, food and medical care.
Initial Consumer Price Index - Initial Consumer Price Index is a measure that examines the initial weighted average of prices of a basket of consumer goods and services, such as transportation, food and medical care.
STEP 1: Convert Input(s) to Base Unit
Ending Consumer Price Index: 106 --> No Conversion Required
Initial Consumer Price Index: 100 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
R = (Ending CPI-Initial CPI)/Initial CPI --> (106-100)/100
Evaluating ... ...
R = 0.06
STEP 3: Convert Result to Output's Unit
0.06 --> No Conversion Required
FINAL ANSWER
0.06 <-- Rate of Inflation
(Calculation completed in 00.004 seconds)

Credits

Created by Team Softusvista
Softusvista Office (Pune), India
Team Softusvista has created this Calculator and 600+ more calculators!
Verified by Himanshi Sharma
Bhilai Institute of Technology (BIT), Raipur
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12 Microeconomics Calculators

Gross Domestic Product
Go Gross Domestic Product(GDP) = Private Consumption+Gross Investment+Government Consumption+Net Exports of Goods and Services
Philips Curve
Go Philips Curve = Expected Inflation-Fixed Positive Coefficient*(Unemployment Today-Unemployment at Natural Rate)
Rate of Inflation
Go Rate of Inflation = (Ending Consumer Price Index-Initial Consumer Price Index)/Initial Consumer Price Index
Equation of Motion for Capital Stock
Go Equation of Motion for Capital Stock = (1-Depreciation)*Capital Used Today+Investment Today
GDP Deflator
Go Average Variable Cost = Nominal Gross Domestic Product/Real Gross Domestic Product*100
Price Elasticity of Demand
Go Price Elasticity of Demand = Percentage change in Q.D./Percentage change in Price
Average Variable Cost
Go Bond Price when Decremented = Total Variable Cost/Quantity of Each Order
Marginal Efficiency of Investment
Go Marginal Efficiency of Investment = Prospective Yield/Supply Price*100
Average Total Cost
Go Average Total Cost = Total Cost/Quantity of Each Order
Marginal Cost
Go Marginal Cost = Change in Total Costs/Change in Output
Net Exports of Goods and Services
Go Net Exports of Goods and Services = Exports-Imports
Investment Multiplier
Go Investment Multiplier = 1/(1-Marginal Propensity to Consume)

Rate of Inflation Formula

Rate of Inflation = (Ending Consumer Price Index-Initial Consumer Price Index)/Initial Consumer Price Index
R = (Ending CPI-Initial CPI)/Initial CPI

How to Calculate Rate of Inflation?

Rate of Inflation calculator uses Rate of Inflation = (Ending Consumer Price Index-Initial Consumer Price Index)/Initial Consumer Price Index to calculate the Rate of Inflation, The rate of inflation measures the percentage change in the purchasing power of a particular currency. As the cost of prices increases, the purchasing power of the currency decreases. Rate of Inflation is denoted by R symbol.

How to calculate Rate of Inflation using this online calculator? To use this online calculator for Rate of Inflation, enter Ending Consumer Price Index (Ending CPI) & Initial Consumer Price Index (Initial CPI) and hit the calculate button. Here is how the Rate of Inflation calculation can be explained with given input values -> 0.06 = (106-100)/100.

FAQ

What is Rate of Inflation?
The rate of inflation measures the percentage change in the purchasing power of a particular currency. As the cost of prices increases, the purchasing power of the currency decreases and is represented as R = (Ending CPI-Initial CPI)/Initial CPI or Rate of Inflation = (Ending Consumer Price Index-Initial Consumer Price Index)/Initial Consumer Price Index. Ending Consumer Price Index is a measure that examines the final weighted average of prices of a basket of consumer goods and services, such as transportation, food and medical care & Initial Consumer Price Index is a measure that examines the initial weighted average of prices of a basket of consumer goods and services, such as transportation, food and medical care.
How to calculate Rate of Inflation?
The rate of inflation measures the percentage change in the purchasing power of a particular currency. As the cost of prices increases, the purchasing power of the currency decreases is calculated using Rate of Inflation = (Ending Consumer Price Index-Initial Consumer Price Index)/Initial Consumer Price Index. To calculate Rate of Inflation, you need Ending Consumer Price Index (Ending CPI) & Initial Consumer Price Index (Initial CPI). With our tool, you need to enter the respective value for Ending Consumer Price Index & Initial Consumer Price Index and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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