how the inflation rate is calculated?

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how the inflation rate is calculated?

please explain it briefly..

2007-02-27 16:56:19 · 3 answers · asked by game 1 in Business & Finance ➔ Other - Business & Finance

3 answers

This link will explain the inflation rate and how it is calculated.
http://en.wikipedia.org/wiki/Inflation_rate

2007-02-27 17:36:49 · answer #1 · answered by sellandtrade 4 · 0⤊ 0⤋

The cost of certain items is compared from year to year. If food & energy are excluded the term is core inflation, because it incorporates the items that are less volatile.

2007-02-27 17:03:26 · answer #2 · answered by VATreasures 6 · 0⤊ 0⤋

I am not sure how it was determined, but the avg. rate of inflation is 4% per year.

2007-02-27 17:06:16 · answer #3 · answered by n0tsan3 3 · 0⤊ 0⤋