EconixaECONOMICS FUNDAMENTALS

Interactive calculator

CPI Basket Calculator

The CPI tracks the cost of a fixed basket of goods and services. Enter prices for a small basket in a base year and a current year; the calculator computes the basket cost in each year and the index (base = 100), then the implied inflation rate. A hands-on way to see exactly what an index number means.

Inflation Rate Calculator

Inflation = (CPI_now − CPI_base) ÷ CPI_base × 100

Inflation rate = 10.00%
Steps
  1. Change in the index: CPI_now − CPI_base = 110.00 − 100.00 = 10.00
  2. Proportional change: 10.00 ÷ 100.00 = 0.1000
  3. As a percent: × 100 = 10.00%
  4. Reading: prices rose — inflation.
Note

Illustrative only — a simplified year-over-year example using a two-point CPI series. Real-world inflation measures use the full consumer basket and published index tables from the statistical authority.

How to use it

  1. Enter base-year prices for each basket item.

  2. Enter current-year prices for the same items.

  3. Read the index value and the inflation rate.

What you will learn

  • Construct a price index from basket data.
  • Compute inflation from index values.
  • Explain substitution and quality biases.