EconixaECONOMICS FUNDAMENTALS

Interactive calculator

Inflation Rate Calculator

The inflation rate is the percentage change in a price index: (P2 - P1)/P1 x 100. Enter any two index values — CPI, GDP deflator, or PPI — and the calculator returns the inflation rate between the periods. Figures you enter are illustrative; this tool teaches the computation, it does not provide official statistics.

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 the price index for the earlier period.

  2. Enter the price index for the later period.

  3. Read the inflation rate between the two periods.

What you will learn

  • Compute inflation from index values.
  • Distinguish the inflation rate from the price level.
  • Explain why index choice matters.