How to use the CPI index to calculate the inflation rate?

CPI index for (T-1) period.

is the base period, 2

Find the CPI index for period T.

Inflation rate in period t.

CPI at the time of T

Index - CPI index for (T-1) period] (CPI index for T-1 period) * 100%.

For example: CPI at the time of T

If the index is 10% and the CPI index in the (T-1) period is 5%, then the inflation rate in the T period = (10%-5%) 5%*100%, that is, the inflation rate in the T period is 2%.

Inflation rate in the second year = (CPI in the second year.)

CPI for the first year) (CPI for the first year) * 100%.

The rate of change in the Consumer Price Index (CPI) reflects the degree of inflation or deflation to some extent. Generally speaking, inflation is considered to have occurred when prices are comprehensive, varied, and continuous. A measure of inflation (deflation).

CPI is an important indicator of inflation. Inflation is a general and sustained rise in the price level. The level of the CPI can indicate the severity of inflation at a certain level.

Inflation rate = current CPI-1.

Inflation rate = (current price level - base period price level) Base period price level.

CPI = (value of a group of fixed commodities based on the current period ** value of a group of fixed commodities on the basis period **) 100%.

For example, if in 1995, the average household in a country spent 1,000 yuan per month to buy a group of goods, and in 2000, the cost of buying this group of goods was 1,100 yuan, then:

With 1995 as the base period:

cpi 1995= (1000/ 1000)*100%= 100%, cpi 2000=（1100/ 1000)*100%=110%.

Inflation rate in 2000 = (CPI 2000- CPI 1995) CPI 1995) * 100% = 10%.

That is: inflation rate in 2000 = CPI 2000-1 = 10%.

<>1. Take the tour and CPI index in the T1 period.

is the base period; 2. Find the CPI index of the T period;

3. Inflation rate in period T.

The CPI index of the isorise mill in the T period minus the CPI index in the T1 period divided by the CPI index in the T1 period multiplied by 100%.

For example, if the CPI index in period T is 10% and the CPI index in period T1 is 5%, the inflation rate in period T is 2%.

Inflation rate = current CPI-1. Inflation rate = (current price level - base period price level) Base period price level. CPI = (value of a group of fixed commodities based on the current period ** value of a group of fixed commodities on the basis period **) 100%.

The Consumer Index (CPI), Consumer Price Index, is a measure of a fixed basket of consumer goods, mainly reflecting the changes in the goods and services paid by consumers, and is also a tool to measure the level of inflation, expressed in the form of percentage changes.

Extended information: 1. The inflation rate, also known as the rate of change in prices, is the ratio of the excess part of money to the actual amount of money needed, which is used to reflect the degree of inflation and currency depreciation. In economics, inflation is the increase in the average price level (based on inflation).

Using the analogy of a balloon, if its size is the price level, the inflation rate is the degree of balloon inflation. Or, the degree to which inflation declines in the purchasing power of money.

2. In practice, inflation is generally not directly and cannot be calculated, but indirectly expressed through the growth rate of the ** index. Since the consumer is the ultimate reflection of the formation of commodities through all aspects of circulation, it most comprehensively reflects the demand for money in commodity circulation. Therefore, the consumer index is the most adequate and comprehensive indicator of the inflation rate.

Countries around the world basically use the consumer ** index (called the consumer ** index in China), that is, the CPI to reflect the degree of inflation.

3. The inflation rate is usually indirectly expressed by the ** index growth rate. If the index growth rate is greater than zero, there is inflation; If the index growth rate is less than zero, deflation is present. When determining the inflation rate, you need to choose a **index to represent the change in the general ** level, and the ** index to choose from mainly includes:

Wholesale Merchandise Index, Retail Sales, Household Consumption Indices and Gross Domestic Product Indices. Most countries use the consumer consumption index as a measure of inflation, and formulate monetary policy and related macroeconomic policies according to the changes in the consumer consumption index to achieve the macroeconomic goal of price stability.

Inflation rate = (current price level - base period price level) base period price level If we directly query the index with CPI being 100 in the previous year**, then the inflation rate = (current CPI - 100) 100 For example: Shanghai 1997-2007.

That is, the consumer price index (consumer

PriceIndex), abbreviated as CPI, is a price change index that reflects the statistics of products and services related to residents' lives, and is usually used as an important indicator to observe the inflation level.

If the CPI rises too much, indicating that inflation has become an economic destabilizing factor, the central bank risks tightening monetary and fiscal policies, creating uncertainty about the economic outlook. As a result, the index's excessively high rise is often unpopular with the market. For example, in the last 12 months, the consumer price index has risen, which means that the cost of living has risen on average compared to 12 months ago.

When the cost of living increases, the value of your money goes down. In other words, a $100 note received a year ago can only be used to buy goods and services worth $100 today.

Generally speaking, when the CPI increases by > 3%, we call it inflation, which is inflation;

And when the CPI increases by > 5%, we call it seriousinflation, which is serious inflation.

CPI can be used as an important indicator of macroeconomic performance. If there is a sustained increase in the CPI, we can generally judge that inflation has occurred in real economic life, but there is no theoretical proof of the time of continuous growth. Therefore, economists generally measure it over a three-month period.

That is, if the CPI has increased for three consecutive months, we can say that inflation has occurred in real economic life. At the same time, according to the different growth of CPI, we can classify the performance of inflation, such as moderate inflation, galloping inflation, etc. Judging from the current performance of China's CPI, it is currently in a moderate inflation stage.