Inflation Rate Calculator

How to Use the Calculator

1. Enter the Consumer Price Index (CPI) for Year 1 and Year 2. The CPI is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.
2. Enter the corresponding years for Year 1 and Year 2. Year 2 should be greater than Year 1.
3. Click the "Calculate" button. The calculator will compute the inflation rate as a percentage change in CPI from Year 1 to Year 2.
4. The result will be displayed as the inflation rate percentage.

Understanding the Formula

The inflation rate is calculated using the following formula:

Inflation Rate = [(CPI_Year2 - CPI_Year1) / CPI_Year1] * 100%

This formula shows the percentage change in the CPI from Year 1 to Year 2, indicating the rate at which the general level of prices for goods and services is rising.

Example

If the CPI in Year 1 was 100 and in Year 2 was 105, the inflation rate would be:

Inflation Rate = [(105 - 100) / 100] * 100% = 5%

This means that the general price level increased by 5% from Year 1 to Year 2.