How To Compute Inflation Rate From CPI?

Use the CPI values for two periods: current period and previous period

Subtract the previous CPI from the current CPI

Divide the result by the previous CPI

Multiply by 100

Formula: Inflation Rate (%) = ((Current CPI – Previous CPI) / Previous CPI) × 100

If using annual inflation, compare the CPI for the same month in different years

If using monthly inflation, compare the CPI for consecutive months

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