ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The inflation rate is the percentage change in the price index for a given period compared to that recorded in a previous period. It is usually calculated on a year-on-year or annual basis. Similarly, one may compile month-on-month rates of change or average annual rates of change.

Detailed explanation-2: -Inflation is an increase in the prices of goods and services. The most well-known indicator of inflation is the Consumer Price Index (CPI), which measures the percentage change in the price of a basket of goods and services consumed by households (see Explainer: Inflation and its Measurement).

Detailed explanation-3: -To calculate the inflation rate, subtract the past cost of an item from its current cost, and divide that result by the past cost. Your result will be a decimal number, so multiply it by 100 to get a percentage.

Detailed explanation-4: -Answer and Explanation: The inflation rate is the: d. percentage change in the price level from one period to another. The inflation rate relates to an economic metric used to determine the percentage of positive variation in the price of basic goods and services.

Detailed explanation-5: -Use the inflation rate formula Subtract the past date CPI from the current date CPI and divide your answer by the past date CPI. Multiply the results by 100. Your answer is the inflation rate as a percentage.