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Rate of Inflation Formula

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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. Check FAQs

R = \frac{ECPI - ICPI}{ICPI}

R - Rate of Inflation?ECPI - Ending Consumer Price Index?ICPI - Initial Consumer Price Index?

Rate of Inflation Example

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Here is how the Rate of Inflation equation looks like with Values.

Here is how the Rate of Inflation equation looks like with Units.

Here is how the Rate of Inflation equation looks like.

0.06 = \frac{106 - 100}{100}

0.06 = \frac{106 - 100}{100}

0.06 = \frac{106 - 100}{100}

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Rate of Inflation Solution

Follow our step by step solution on how to calculate Rate of Inflation?

FIRST Step Consider the formula

R = \frac{ECPI - ICPI}{ICPI}

Next Step Substitute values of Variables

∴

R = \frac{106 - 100}{100}

Next Step Prepare to Evaluate

∴

R = \frac{106 - 100}{100}

LAST Step Evaluate

∴

R = 0.06

Rate of Inflation Formula Elements

Variables

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.

Symbol: R

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Rate of Inflation

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.

Symbol: ECPI

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Ending Consumer Price Index

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.

Symbol: ICPI

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Initial Consumer Price Index

Other formulas in Microeconomics category

Go Average Total Cost

ATC = \frac{Tc}{Q}

Go Gross Domestic Product

GDP = PCN + GI + G + NX

Go Net Exports of Goods and Services

NX = X - M

Go Price Elasticity of Demand

PED = \frac{PCQ}{%ΔP}

How to Evaluate Rate of Inflation?

Rate of Inflation evaluator uses Rate of Inflation = (Ending Consumer Price Index-Initial Consumer Price Index)/Initial Consumer Price Index to evaluate 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 evaluate Rate of Inflation using this online evaluator? To use this online evaluator for Rate of Inflation, enter Ending Consumer Price Index (ECPI) & Initial Consumer Price Index (ICPI) and hit the calculate button.

FAQs on Rate of Inflation

What is the formula to find Rate of Inflation?

The formula of Rate of Inflation is expressed as Rate of Inflation = (Ending Consumer Price Index-Initial Consumer Price Index)/Initial Consumer Price Index. Here is an example- 0.06 = (106-100)/100.

How to calculate Rate of Inflation?

With Ending Consumer Price Index (ECPI) & Initial Consumer Price Index (ICPI) we can find Rate of Inflation using the formula - Rate of Inflation = (Ending Consumer Price Index-Initial Consumer Price Index)/Initial Consumer Price Index.

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Rate of Inflation Formula

Rate of Inflation Example

Rate of Inflation Solution

Rate of Inflation Formula Elements

Other formulas in Microeconomics category

How to Evaluate Rate of Inflation?

FAQs on Rate of Inflation

Variable Name