Inflation Rate in Year 2 (using CPI)

The Inflation Rate calculator uses CPI in two consecutive years to calculates the inflation rate between a distinct year 2 and a distinct year 1.

INSTRUCTIONS: Enter the following:

• (CPI₂) This is the CPI in year two.
• (CPI₁) This is the CPI in year one.

Inflation Rate (IR): The inflation rate is returned as a percentage.

The Math / Science

The formula for Inflation Rate based on two years of CPI is:

    IR = (CPI₂ - CPI₁)/CPI₁

where:

• IR = Inflation Rate
• CPI₂ = CPI in year 2
• CPI₁ = CPI in year 1

Macroeconomics Calculators

• Income Elasticity of Demand
• Cross-Price Elasticity of Demand
• Price Elasticity of Demand
• Price Elasticity of Supply
• Total Surplus
• Consumer Surplus
• Producer Surplus
• GDP Growth
• GDP Deflator
• GDP by Income
• GDP Expenditure
• Net Capital Outflow
• Net Exports and Net Capital Outflow
• Dollar Conversion from Different Times
• Unemployment Rate (Friedman and Phelps)
• National Saving
• Domestic Investment
• Unemployment Rate
• Inflation Rate in Year 2 (using CPI)
• Labor Force
• Labor-Force Participation Rate
• Net Exports
• Real Exchange Rate
• Currency Converter
• Midpoint Method for Price Elasticity of Demand
• Income Elasticity of Demand
• Simple Price Elasticity of Demand

Reference:

• Mankiw, N. Gregory. "Chapter 11:The Consumer Price Index." Principles of Macroeconomics. 6th ed. Mason, OH: Thomson/South-Western, 2004. 218-20. Print. "Inflation Rate in Year 2"