Inflation rate = current CPI-1.

Inflation rate = (current price level - base period price level)/base period price level

CPI= (the value of a group of fixed commodities calculated at current prices/a group of fixed commodities Value calculated based on base period price) × 100.

For example:

If an average household in a certain country spent 1,000 yuan per month purchasing a set of goods in 1995, and the cost of purchasing this set of goods in 2000 was 1,100 yuan, then :

Using 1995 as the base period:

CPI 1995= (1000/ 1000)*100= 100, CPI 2000= (1100/ 1000)*100=110.

The inflation rate in 2000= ((CPI 2000- CPI 1995) / CPI 1995)*100= 10

That is: the inflation rate in 2000=CPI 2000-1=10.

Extended information:

Important indicators related to inflation:

1. Producer price index (PPI)

Producer price The Producer Price Index is a price index that measures the prices of goods sold by manufacturers and farmers to stores. It mainly reflects the price changes of production materials and is used to measure the cost price changes of various commodities at different production stages.

2. Consumer Price Index (CPI)

Consumer Price Index is a measurement of the price of a fixed basket of consumer goods, mainly reflecting the price consumers pay for goods. It is also a tool to measure the level of inflation, expressed as a percentage change.

3. Retail Price Index (RPI)

Retail Price Index refers to the price index of retail goods paid in cash or credit card. The U.S. Department of Commerce conducts nationwide sample surveys of retail goods every month, including furniture, electrical appliances, supermarket products, medicines, etc., but various service industry consumption is not included. Auto sales constitute the largest single component of retail sales, accounting for approximately 25% of the total.

Many foreign exchange market analysts attach great importance to examining changes in the retail price index. The rapid development of social economy and the increase in personal consumption will lead to an increase in retail prices. The continued rise of this indicator may bring about rising inflationary pressure, causing the government to tighten the money supply. The rising interest rates will bring benefits to the country's currency. support. Therefore, a positive trend in the index is also theoretically positive for the country's currency.

Baidu Encyclopedia-Inflation Rate

Baidu Encyclopedia-Consumer Price Index