Figuring the inflation ratio
A Consumer Bill Index (CPI) character is a measurement of the fee flat of the U.S. economy at a speck in generation. Every month, employees of the U.S. Office of Labour Statistics (BLS) inscribe the prices of the "marketplace Hamper," a compilation of the goods and services that the customary consumer buys. Using this information, the BLS determines the CPI for that month. The CPI is a convenient means to chronometer changes in the cost equivalent. One of the leading uses of the CPI is to cinch the inflation scale (the scale of interchange of the expenditure alike over a extent of time).
Instructions
1. Find the CPI numbers for the first and last years of the period for which you want to determine the interest rate. If the result is a positive number, it is the rate of inflation over that period. If it is a negative number, it is the rate of deflation over that period.
3. Divide the result of the last step by the CPI of the first year. (Example: 6.5 / 190.3 = 0.034)
4. Move the decimal over two places to the right to transform the result to a percentage. (Example: 0.034 = 3.4 percent)
5. Determine whether your result is an inflation rate or a deflation rate. This information is published on the Bureau of Labor Statistics website.2. Subtract the CPI of the most recent year from the CPI of the first year. For instance, if the CPI in the first year was 190.3 and the CPI from the most recent year was 196.8, the result would be 6.5 (196.8 -- 190.3 = 6.5).
