How to calculate inflation?

Question

How to calculate inflation?

Answer 1

Find the inflation rate and add one to it, then times it by the current amount your currency is worth.

Answer 2

there are many ways to calculate inflation, but the most common is

"the basket "

as in they take the cost of

electricity -fixed amount

certain groceries : milk ,bread etc

gasoline

average mortgage payment

vehicle payments

and compare them to the cost a month ago or a year ago and create a ratio and get your inflation rate

that is why inflation can differ state to state

if housing costs drop huge in one state but go up in another then the inflation rate will differ a large amount between states

hope this helps

Answer 3

It depends on which price index you wish to use, and there are reasons why you might want to choose one over the other. Not a simple quesiton. Start here, though.  

Answer 4

Not everyone agrees on what inflation is.  Some people say inflation is increasing prices.  Others say that inflation is increasing wages.  Some say it's both of the above.  And some it's neither one of the above.

According to one economic theory, inflation is expansion of the money supply and credit (or debt).

http://globaleconomicanalysis.blogspot.c...

Answer 5

Its a cumbersome job for any individual. Therefore actuaries r appointed to hadle this job...  

Answer 6

From what i know, calculating inflation is very hard to do. it's a long process and can't be done by one person using a calculator.

If you want to know the current inflation rate you can always check the website for your countries central bank. they should have it there somewhere.

For example: Bank of Canada

you can see the inflation rate on the top right of the first page. it's at 3.1% right now

Don't remember where you can find the inflation for US, if i remember right it was on the Federal Reserve website. I can't find it right now.

If i find it i'll post it