The cost breakthrough of goods and services in an economy is admitted as inflation. The ratio of inflation can stimulate flowering or author stagnation in a region or community. Great rates of inflation can weaken currency, central markets and consumer purchasing competency. In contrast, low rates of inflation can stimulate money investment and sway to beefing up.5. The formula for calculating the inflation rate is [(end CPI - start CPI) / start CPI] x 100, where "CPI" is the Consumer Price Index.6.
Find the Consumer Price Index
1. Go to the website of the Bureau of Labor Statistics (see Resources section).
2. In the right-hand column, "Latest Numbers," select the link "Historical Data" associated with "Consumer Price Index."
3. Select "More Formatting Options."
4. Uncheck the box "1 Month Percent Change" and select the box marked "Original Data Change." Click "Retrieve Data."
Calculate the Annual Inflation Rate
Refusal inflation can decrease important investment and heavy to economic stagnation.Being the percentage of inflation can hog such a momentous bump, it is big to discern what the annual standard of inflation is, if you are a livelihood owner or an individual investor.
Instructions
Stare at the CPI numbers associated with the 12-month period that mark the start and end of the period for which you'd like to calculate the annual inflation rate. For instance, if you'd like to calculate the annual inflation rate between February 2008 and February 2009, take note of the numbers 212.860 and 213.007.
7. Subtract the end CPI, in this case 213.007, from the start CPI, 212.860. The result here is 0.147.
8. Divide that result by the start CPI (212.860) and multiply by 100. This product, 0.069 or 6.9 percent, is the annual inflation rate for the period you've selected.
