Economics
Basic

Inflation Rate

The rate at which the general price level rises over time.

Formula

π=CPI1−CPI0CPI0×100%\pi = \dfrac{CPI_1 - CPI_0}{CPI_0}\times 100\%

Variables

\piInflation rate
CPI_1Current price index
CPI_0Prior price index

Example

CPI 262 vs 250: (12/250) = 4.8%

Did You Know?

At 7% annual inflation, prices double in about a decade — an application of the rule of 72.

inflationcpimacro