How do I find the rate of inflation?

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How do I find the rate of inflation?

If I have a price index for years 88 through 91, and I am asked what the rate of inflation was between each of those years, how do I know what it is? For example, the price index for 88 was 100, but the price index for 89 was 120,...does that mean that the rate of inflation between these two years was just 20 percent? Or is there some other calculation that I am missing?

Its for some homework and I think that I am overthinking it. =\

2007-10-11 09:15:05 · 2 answers · asked by Anonymous in Education & Reference ➔ Homework Help

2 answers

Yes, take the quotient of the indices of successive years, and convert the increase into a percentage. Good thinking!

2007-10-11 09:20:04 · answer #1 · answered by John V 6 · 0⤊ 0⤋

Ya te contestaron. De verdad hablas espaÃ±ol?

2007-10-11 09:26:04 · answer #2 · answered by elgil 7 · 0⤊ 2⤋