Inflation Rate Calculation and Consumer Price Index Data

How to calculate the inflation rate using the Consumer Price Index (CPI) data?

If 2012 is the base year, then the inflation rate for 2012 equals______.

Answer:

The inflation rate for 2012, if 2012 is the base year, is equal to [(CPI in 2012 - CPI in 2013) / CPI in 2013] x 100.

Calculating the inflation rate using the Consumer Price Index (CPI) data involves comparing the CPI values of different years to measure the percentage change in prices over time. If 2012 is considered the base year, the formula to calculate the inflation rate for 2012 is [(CPI in 2012 - CPI in 2013) / CPI in 2013] x 100.

By subtracting the CPI value of the base year from the following year's CPI value, dividing the result by the following year's CPI, and multiplying by 100, you can determine the inflation rate for the base year.