The percentage change in the CPI from one period to the next. Knowing the consumer price index for two periods of time, inflation can be measures: [(CPI2 – CPI1)/CPI1] x 100. For example. If the CPI in 2011 = 156 and the CPI in 2010 = 150, then the inflation rate equals (156 – 150)/150 = 0.04 x 100 = 4%. The inflation rate was 4% between 2010 and 2011.
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