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
- Write down the values for each letter in the formula.
- Do the brackets first, then divide or multiply.
- Multiply by 100 to show the answer as a percentage.
- 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
Practice Inflation rate with real numbers
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