Advice 1: How to calculate inflation

Inflation is an indispensable attribute of market economy. Among her reasons for this are several factors which in General terms are as follows: when the same volume of output disproportionately increases the amount of circulating money. Thus money is worthless.
How to calculate inflation
To calculate inflation, using the consumer price index that describes the average level of prices for goods and services in the economy. With this as a basis for determining the value of a so-called market basket – average set of goods and services required to meet the essential needs of one person. In accordance with the law of 31 March 2006 N44-FZ "On consumer basket as a whole," the composition of the basket is defined by three aggregated groups of commodities and services:
• Food
• Household goods (clothes, shoes, linen, household goods, etc.)
• Services (payment of utilities, transportation services, etc.).
The consumer price index is relative. To calculate inflation, determine the base year is the period of time in relation to which the estimated change in the price of the same goods and services. To do this, divide the sum of the products of the prices of the current year and output in the base year for the sum of the product of prices and output in the base year. The obtained value is expressed in percent.
The task in statistics is often required to calculate inflation for several years. It is known as increased prices for each year separately. For example, you need to calculate inflation for 2 years, if you know that for the first year prices rose by 20%, and for the second 25%. If you take the starting price level for X, the result of the first of the year inflation will be 1.2 X, and at the end of the second year – 1.2 X ? 1,25 = 1,5 H. Thus, inflation in 2 years is 50%.

Advice 2: How to calculate consumer price index

The index of consumer prices – one of the ways to measure the average level of prices, which is calculated for a variety of goods and services and, according to some researchers, is the best indicator of cost of living.
How to calculate consumer price index
The index of consumer prices, calculates the change of prices of goods and services included in the consumer basket. In Russia, the consumer basket was approved on 31 March 2006 Federal law No. 44-FZ "On consumer basket in the Russian Federation". It includes three groups of products and services:
• Food (grain products, potatoes, vegetables, etc.)
• Non-food goods (clothes, medicines, household goods, etc.);
• Facilities (utilities, transportation, etc.).
To calculate the index of consumer prices alone, you need a full list of the included in the basket of goods and services, their pricesand the base year and the current market value. Formula index of consumer prices as follows: CPI = ? (C(t) ? T(b)) / ? (C(b) ? T(b)),where C(t) and p(b) – the level of prices, respectively, of the current and base years for the products and services of the consumer basket;
T(b) – list of goods and services in the consumer basket. To calculate inflation, the fraction is multiplied by 100 about thepricestov.
Similarly, we can calculate the index of consumer prices and inflation based on its own consumption basket. To do this make a complete range of products and services that are necessary for you and you always use. Write down their current pricess. For personal use you can calculate the index of consumer prices on a monthly basis. Some people described method to calculate the so-called real inflation, which typically does not coincide with the rate of inflation, officially approved. However, nothing surprising in this. It has long been observed that inflation is always higher in the group of inexpensive items which is the majority of the population.
The price index shows how many times the increased (decreased) the cost of production due to price changes or how many percent growth (decrease) of the cost of production as a result of changes in prices. The formula for determining the price index has the form of One of the most important indicators of price statistics, widely used in economic and social policy, is the consumer price index (CPI) .
Useful advice
The scope of products: For the calculation of CPI collected prices on 450 goods and services, of which 156 – food products, 226 – non-food goods and 68 services. The consumer price index includes all major groups of goods and services, on a monthly basis covering about 50 000 price quotations. The second stage is carried out in the national statistics Committee with the use of a modified Laspeyres formula, when 450 short-term price index is aggregated into the national index.
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