Inflation rate = current CPI-1.
inflation rate = (current price level-base price level)/base price level
CPI= (value of a group of fixed commodities at current price/value of a group of fixed commodities at base price) ×1%.
For example:
If the average family in a country spent 11 yuan to buy a group of goods every month in 1995, then:
Take 1995 as the base period:
CPI 1995 = (1/1) * 1% = 1. CPI 2 = (11/1) * 1% = 11%.
Inflation rate in 2 = ((CPI 2-CPI 1995)/CPI 1995) * 1% = 1%
That is, inflation rate in 2 =
Extended information:
Important indicators related to inflation:
1. Producer Price Index (PPI)
Producer price index (PPI) is a price index to measure the goods sold by manufacturers and farmers to stores. It mainly reflects the price changes of means of production 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 measure of the price of a fixed basket of consumer goods, which mainly reflects the price changes of goods and services paid by consumers. It is also a tool to measure the level of inflation, expressed in percentage changes.
3. Retail Price Index (RPI)
Retail price index refers to the price index of retail goods paid in cash or by credit card. The U.S. Department of Commerce conducts a monthly sample survey of retail commodities nationwide, including furniture, electrical appliances, supermarket products, medicines, etc., but the consumption of various service industries is not included. Automobile sales constitute the largest single component of retail sales, accounting for about 25% of the total.
Many foreign exchange market analysts pay great attention to the changes of retail price index. With the rapid development of social economy and the increase of personal consumption, the retail price will rise. If the index continues to rise, it will probably bring the pressure of rising inflation, make the government tighten the money supply, and the interest rate will gradually rise to the national currency, which will bring favorable support. Therefore, the index is positive, which is theoretically better than the country's currency.
Baidu Encyclopedia-Inflation Rate
Baidu Encyclopedia-Consumer Price Index