Economics
Basic

Inflation Rate

Percentage change in the price index.

Formula

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

Variables

CPIConsumer price index

Example

Rising prices over time

Did You Know?

Modest inflation is deliberately targeted by central banks, usually around 2%, to keep economies growing.

macro