Inflation rate

How we calculate Inflation rate?
Replies (4)

In order to calculate the inflation rate for any product or service, you will need the price of the goods or services for the two periods of time in question. You then use this formula to calculate the inflation rate:

Inflation Rate = ((T2 - T1) / T1) x 100

T1 = Price for the first time period (or the starting number)
T2 = Price for second time period (or the ending number)

Here's an example. Let's say that the price of a 32-inch flat screen television was Rs 20,000 last year but is Rs. 21,000 this year. What's the annual rate of inflation for 32-inch flat screen televisions?

Inflation Rate = ((T2 - T1) / T1) x 100       i.e 1000/20000 x 100    i.e. 5%

Thanks for giving me information.
Sir, At present Which Index does India is following either WPI (or) CPI and what products come under each of the two indexes?

CPI

REFER: cpi-inflation-india-2017

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
08 October 2026
Accounts and Tax Associate

POOJA R TELI & CO

Pune

CA Inter

View Details
Company
19 September 2026
Finance Manager

Mugdha Art Studio

Hyderabad

CA

View Details
Company
ARTICLESHIP 21 September 2026
CA Article Assistant

KK & Company Chartered Accountant

Pune

CA Inter

View Details
Company
14 October 2026
Accountant

Rize.farm

Bengaluru

B.Com

View Details
Company
30 September 2026
Senior Accounts Executive

Codeboard Technology

Chennai

MBA

View Details
Company
18 September 2026
Accounts & Finance Specialist

ULTRA CHEMICAL WORKS

Thane

CA Final

View Details
Company
ARTICLESHIP 30 September 2026
CA Article Assistant

CA Suraj Garg & Associates

New Delhi

CA Final

View Details
Company
ARTICLESHIP 07 October 2026
Article Trainee/ CMA Trainee

RMA And Associates LLP

New Delhi

CA Inter

View Details