Identify the starting price level or Consumer Price Index (CPI)
Identify the ending price level or Consumer Price Index (CPI)
Subtract the starting value from the ending value
Divide the result by the starting value
Multiply by 100 to convert to a percentage
Use the formula: Inflation Rate = ((Ending CPI – Starting CPI) / Starting CPI) × 100
If using prices instead of CPI, apply the same formula to the chosen basket or item prices