How to calculate inflation rate

Define indexes (growth rates) of prices. For that current year prices are divided into prices of the previous base period. The product is multiplied by one hundred percent. During the reporting period, you can take a month, quarter, and year.For example, the cost of vehicles in 2003 was equal to 2 300 000 rubles, and in 2004 - 2 560 000. Thus, the price index for cars is equal to:
(2 560 000 / 2 300 000)*100% = 1.11%.

Determine the rate of growth of prices. This indicator is calculated as the difference between the price of the current year and the price of the previous period divided by the price of the previous year and multiplied by 100%. The indicator is measured in percent. As for the baseline and for the reporting period was adopted a month or a year. The comparison of indicators allows the government to quickly and adequately respond to the high rate of growth of prices. In the above example the growth rate of prices is equal to:
(2 560 000 – 2 300 000) / 2 300 000 * 100% = 11.3%.

Determine the price index, their average growth over a certain period. In this example, inflation, which concerns the growth of prices for cars, is expressed in 1.1%. Small, but consumers are particularly sensitive to such price increases.

Determine the index of GDP.It is worth noting that in addition to the above indices, inflation is determined by a number of indicators, such as GDP or the consumer basket. So GDP is equal to the ratio of the cost of a basket of GDP in the current period to the same period in the base year. Is expressed percentage. And as the period select month, quarter or year.If the level of inflation is markedly reduced, it is possible to speak about the phenomenon of disinflation. So, the state policy carried out in relation to regulation of prices for goods or services, effective. This allows you to convince consumers to improve their standard of living.