Calculate Inflation Rate from Cpi

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Calculate Inflation Rate from CPI

This calculator helps you determine the inflation rate between two periods using their respective Consumer Price Index (CPI) values. Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

Result:

Understanding Inflation Rate Calculation

The Consumer Price Index (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. It is calculated by taking price changes for each item in the predetermined basket of goods and averaging them. Changes in the CPI are used to calculate the inflation rate.

The formula to calculate the inflation rate between two periods using CPI is:

Inflation Rate = ((CPI in Ending Period – CPI in Starting Period) / CPI in Starting Period) * 100

For example, if the CPI was 250.5 in the starting period and rose to 255.8 in the ending period, the inflation rate would be calculated as:

Inflation Rate = ((255.8 – 250.5) / 250.5) * 100 = (5.3 / 250.5) * 100 ≈ 2.12%

A positive inflation rate indicates that prices have increased, while a negative rate (deflation) indicates that prices have decreased.

function calculateInflation() { var cpiStartInput = document.getElementById("cpiStart"); var cpiEndInput = document.getElementById("cpiEnd"); var resultDiv = document.getElementById("result"); var cpiStart = parseFloat(cpiStartInput.value); var cpiEnd = parseFloat(cpiEndInput.value); if (isNaN(cpiStart) || isNaN(cpiEnd) || cpiStart <= 0) { resultDiv.innerHTML = "Please enter valid positive numbers for both CPI values."; return; } var inflationRate = ((cpiEnd – cpiStart) / cpiStart) * 100; resultDiv.innerHTML = "The inflation rate is: " + inflationRate.toFixed(2) + "%"; }

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