Apr 21 2012

Inflation rate

The percentage change in the CPI from one period to the next. Knowing the consumer price index for two periods of time, inflation can be measures: [(CPI2 - CPI1)/CPI1] x 100. For example. If the CPI in 2011 = 156 and the CPI in 2010 = 150, then the inflation rate equals (156 – 150)/150 = 0.04 x 100 = 4%. The inflation rate was 4% between 2010 and 2011.


About the author:  Jason Welker teaches International Baccalaureate and Advanced Placement Economics at Zurich International School in Switzerland. In addition to publishing various online resources for economics students and teachers, Jason developed the online version of the Economics course for the IB and is has authored two Economics textbooks: Pearson Baccalaureate’s Economics for the IB Diploma and REA’s AP Macroeconomics Crash Course. Jason is a native of the Pacific Northwest of the United States, and is a passionate adventurer, who considers himself a skier / mountain biker who teaches Economics in his free time. He and his wife keep a ski chalet in the mountains of Northern Idaho, which now that they live in the Swiss Alps gets far too little use. Read more posts by this author


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