BizJourney
Home › Formulas › Inflation rate

How to calculate Inflation rate

The Inflation rate formula, with plain worked examples you can check yourself.

Inflation rate = (CPI new − CPI old) ÷ CPI old × 100

The result is a percentage (%).

Worked examples

CPI new = 120 · CPI old = 100Inflation rate = 20%
CPI new = 525 · CPI old = 500Inflation rate = 5%
CPI new = 208 · CPI old = 200Inflation rate = 4%

How to use it

  1. Write down the values for each letter in the formula.
  2. Do the brackets first, then divide or multiply.
  3. Multiply by 100 to show the answer as a percentage.
  4. Compare the answer with last period or with a competitor to see if it is good or bad.

This formula belongs to Money & Prices.

Related terms

InflationPrice elasticityDeflationMonetary policyMoney supplyCentral bank

Practice Inflation rate with real numbers

Quizzes, a CEO simulator, a real estate tycoon game and startup tools. Free to start, in 7 languages.

Play BizJourney free →