How to Calculate Inflation Rate

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Rebuilt the section into an inflation-rate-specific article plus CPI calculator so the content, labels, and logic now match the requested topic. – Article copy now defines CPI-based inflation, walks through the formula, and gives a realistic example with CPI rising from 258.1 to 269.5 over one year versus two years. – Inputs labeled `Base CPI`, `Current CPI`, and `Years between CPI snapshots` align directly with the inflation rate math, while the inline button calls `calculateInflationRate()`. – Inline JavaScript validates CPI indexes, computes both cumulative and annualized percentages, and outputs the result inside `inflationResult`.

How to Calculate Inflation Rate with CPI Data

The inflation rate links two Consumer Price Index readings, expressing the percentage change in price level between them. By measuring how the CPI shifts over a known period, you can describe how fast purchasing power is eroding.

How the CPI formula works

Subtract the earlier CPI index from the later index, divide that difference by the starting index, then multiply by 100 to convert to a percentage. This gives you the cumulative inflation over the span.

Example: A CPI rising from 258.1 to 269.5 over one year results in (269.5 – 258.1) / 258.1 × 100 ≈ 4.7 percent inflation. If the same CPI shift occurs over two years, the average annualized rate would be about 2.3 percent per year, which is useful when comparing multi-year snapshots.

Why both cumulative and annualized figures matter

  • Cumulative inflation shows the total price movement between your two CPI readings.
  • Annualized inflation normalizes the change to a per-year pace, making periods of different lengths comparable.
  • Tracking the annualized rate helps you spot accelerating or decelerating price pressure even when the raw CPI change is modest.

Inflation rate calculator

Use decimal years for spans shorter than 12 months (for example, 0.5 for six months).
Next steps: 1. Paste this HTML into the desired WordPress block and verify that entering 258.1, 269.5, and 1 yields approximately 4.7 percent cumulative inflation. 2. Adjust the styling or wrapping containers as needed to match your site's visual system.

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