How to calculate inflation rate?

To calculate the inflation rate, you will need to use the Consumer Price Index (CPI) from the Bureau of Labor Statistics. The formula for calculating the inflation rate is: (CPI in current year – CPI in base year) / CPI in base year x 100. For example, if the CPI in the current year is 110 and the CPI in the base year was 100, the inflation rate would be (110 – 100) / 100 x 100 = 10%.

The effects of inflation are often not directly felt but are played out over a long time, especially long-term investments are vulnerable to inflation.


At Horizon65, we created a mobile app that enabled you to check the effect of inflation on your savings.

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