The formula used in the calculation is:
\[ \text{Inflation Rate} = \left( \frac{\text{Final CPI} - \text{Initial CPI}}{\text{Initial CPI}} \right) \times 100 \]
This calculator computes the Inflation Rate based on the input values of the Consumer Price Index (CPI) at the start and end of a given period. The CPI reflects the average cost of living and includes prices for a large basket of goods and services. The inflation rate is the percentage increase in the CPI over a specified period.
Let's assume the following:
Calculate the inflation rate:
\[ \text{Inflation Rate} = \left( \frac{105 - 100}{100} \right) \times 100 = 5\% \]
Therefore, the Inflation Rate for this example is 5%.
