Instruction

1

The coefficient

**of inflation**is a measure that characterizes the ratio of the prices of the previous and the current period (year, quarter, month). This index is called the index**of inflation**or price index and shows the change in the value of a particular set of goods and services. The coefficient**of inflation**provides an opportunity to assess inflationary processes in the economy.2

You can calculate

**the coefficient****of inflation**independently. To do this, use the following formula: change in**inflation**= (Sum of prices of the current period x production of the current period)/(Sum of prices of the base period x production of the base period).3

Note that

**the coefficient****of inflation**is calculated in a centralized manner and is published in the media. In our country, the calculation of this indicator of inflation is the Federal state statistics service. In the calculations carried out annually, and in the baseline period choose December of the previous year. When calculating**the ratio**and**inflation**for the month as a base take the month preceding the calculation.4

In the analysis

**of inflation,**you can take into account the core price index. It is determined without taking into account the prices of electricity and food. This is due to the fact that these components can vary significantly from month to month, greatly distorting the value of the main indicator.5

The coefficient

**of inflation**is one of the most important indicators of life of the population, as the basis for its calculation is the consumer basket, which consists of many goods and services with fixed consumer prices. The consumer price index is solely a measure of price change, not the cost of living because it does not account for changes in the structure of current consumption of the population.Note

Real inflation: how to calculate? To be able to calculate your own inflation, it is necessary to keep a personal budget. Table 1. The increase in costs of a citizen because of rising prices. Calculate the inflation for a given list of expenses. The real inflation of the citizen = (31020/28000 - 1)*100% =10,8% a year.

Useful advice

...How to calculate inflation? Posted on 26 Mar 08 (11:11). To increase the font. Then the information is analyzed, and displays the total inflation index, which shows how in General, prices for these product groups together. Explain with a simple example: suppose the bread was worth 10 rubles, and has become 12 rubles, so if the group of goods included only one this product, we have inflation it would be 20%.