Inflation refers to the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. Central banks attempt to limit inflation, and avoid deflation, with varying targets of what they see as appropriate.
The most common measure of inflation is the Consumer Price Index (CPI), which tracks the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
To calculate the inflation rate between two periods, you can use the following formula:
Inflation Rate = [(CPI in Later Period – CPI in Earlier Period) / CPI in Earlier Period] * 100%
Where:
CPI in Later Period: The Consumer Price Index for the more recent time period.
CPI in Earlier Period: The Consumer Price Index for the older time period.
This calculator helps you determine the percentage change in prices between two given points in time using their respective CPI values.
Result:
function calculateInflation() {
var cpiEarlier = parseFloat(document.getElementById("cpiEarlier").value);
var cpiLater = parseFloat(document.getElementById("cpiLater").value);
var resultDiv = document.getElementById("result-section");
var inflationRateResultDiv = document.getElementById("inflationRateResult");
var percentageChangeDiv = document.getElementById("percentageChange");
if (isNaN(cpiEarlier) || isNaN(cpiLater)) {
inflationRateResultDiv.innerHTML = "Please enter valid numbers for both CPI values.";
percentageChangeDiv.innerHTML = "";
resultDiv.style.display = "block";
return;
}
if (cpiEarlier === 0) {
inflationRateResultDiv.innerHTML = "CPI in Earlier Period cannot be zero.";
percentageChangeDiv.innerHTML = "";
resultDiv.style.display = "block";
return;
}
var inflationRate = ((cpiLater – cpiEarlier) / cpiEarlier) * 100;
inflationRateResultDiv.innerHTML = "The inflation rate is: " + inflationRate.toFixed(2) + "%";
if (inflationRate > 0) {
percentageChangeDiv.innerHTML = "This indicates a " + inflationRate.toFixed(2) + "% increase in prices.";
} else if (inflationRate < 0) {
percentageChangeDiv.innerHTML = "This indicates a " + Math.abs(inflationRate).toFixed(2) + "% decrease in prices (deflation).";
} else {
percentageChangeDiv.innerHTML = "There has been no change in prices.";
}
resultDiv.style.display = "block";
}
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