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Home > Inflation rate

If P₁ is the current average price level and P₀ is the price level a year ago, the rate of inflation during the year might be measured as follows:

inflation rate = (P₁ - P₀)/P₀, stated as a percentage.

There are other ways of calculating the inflation rate, such as the natural log of P₁ minus the natural log of P₀, again stated as a percentage.

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Topics: Inflation Rate Level Price Log Size Year Percentage Natural...

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InflationFor alternative meanings see inflation (disambiguation). In economics, inflation is a fall in the market value or purchasing power of money. This is equivalent to a rise in the general level of prices. Inflation is the opposite of deflation. Zero or very Inflation in MexicoInflation raised between december 2001 to december 2002 by 4. 40, one year later it raised by 5. 70 according to INEGI (the official body of statistics of Mexico). In 2002, the government did not reach to keep inflation below 4. For december 2003, the tar Inflation (disambiguation)In economics, inflation is the rise in the general level of prices. In cosmology, astrophysics, and astronomy, inflation ( cosmic inflation) is the idea—first proposed by Alan Guth (1981)—that the nascent universe passed through a phase of exponential exp Inflation rateIn economics, the inflation rate is the rate of increase of the average price level (a measure of inflation). If one likes analogies, the size of a balloon is like the price level, while the inflation rate is how quickly it grows in size. Alternatively, t Inflationary epochThe inflationary epoch is the term used in cosmology to describe the brief time in the very early universe when, according to inflation theory, the universe was expanding exponentially. It is believe to have occurred about 10-35 seconds after the Big Bang