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Calculating a Specific

So if you want to know how much prices have increasedover the last 12 months (the commonly published **Inflation**Rate**inflation**rate number) subtract last year's index from the current index anddivide by last year's number, multiply the result by 100 and

**add**a % sign.

Similarly, you may ask, how do you calculate the inflation rate?

To **calculate inflation**, start by subtracting thecurrent price of a good from the historical price of the same good.Then, divide that number by the current price of the good. Finally,multiply that number by 100 and write your answer as apercentage.

**Calculating**the

**Inflation**Rate Divide the price at the end of the period by the priceat the start of the period. For example, if you wanted to measurein the

**annual inflation**rate of gas over eight years and theprice started at $1.40 and went up to $2.40, divide $2.40 by $1.40to get 1.714285714.

Beside this, what is the current inflation rate 2019?

The 2018 **inflation rate** was 2.44%. The **currentinflation rate** (2018 to **2019**) is now 1.75%^{1}.

**Real income** is **income** of individuals ornations after adjusting for inflation. It is **calculated** bydividing nominal **income** by the price level.