Hi, Buddy,
Before understanding how to calculate Inflation rate in India, let me assist you in understanding what is the Inflation rate?
The rate of growth in the general price of selected products and services over a given period of time is referred to as the inflation rate. Inflation is defined as a decrease in the purchasing power or worth of a country's currency, and it is usually expressed as a percentage.
What is the Consumer Price Index(CPI) is a statistic calculated by averaging the prices of a hypothetical basket of goods and services purchased by consumers.
How is inflation measured:The inflation rate is commonly estimated using the following formula:
Where A is the initial number and B is the finishing number, the formula is (B - A)/A x 100.
The formula requires the consumer price index starting point (a specific year or month in the past) for a specific good or service, as well as the current consumer price index recording for the same good or service. Subtract to discover the difference between the two numbers.
This difference represents the increase in the consumer price index for the specified good or service. Subtract the result from the beginning price (the price reported for the date in the past rather than the current date). You'll get a decimal as a result of this. Multiply this amount by 100 to get a percentage. This will give you the rate of inflation.
I hope that this Inflation rate formula would help you with your query of how to calculate Inflation rate in India.
Do not allow inflation to prevent you from buying your dream home. Get affordable housing from NoBroker.Read More:
How Repo Rate Controls Inflation? In Addition To Cost Of Inflation Index, What Other Expenses Incurred On The Property Can Be Considered As Cost Base?Your Feedback Matters! How was this Answer?
Shifting, House?
✔
Lowest Price Quote✔
Safe Relocation✔
Professional Labour✔
Timely Pickup & Delivery
Intercity Shifting-Upto 25% Off
Check Prices
Intracity Shifting-Upto 25% Off
Check Prices
City Tempo-Upto 50% Off
Book Now
How is Inflation Measured?
Krishna
349 Views
1
3 Year
2022-03-28T18:12:42+00:00 2024-10-04T15:48:09+00:00Comment
Share