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Inflation Rate Calculator

Work out inflation rate instantly with clear inputs, formula shown and shareable results.

About Inflation Rate Calculator

Inflation is the percentage change in a price index between two dates, annualised when the interval is not twelve months. Real wage growth is the ratio of nominal wage growth to price growth, not their difference — the approximation only holds at low rates.

Formulas

Period inflation

Inflation % = (Current index / Previous index - 1) x 100

Annualised

Annualised % = [(Current / Previous)^(12/Months) - 1] x 100

Real wage growth

Real % = [(1 + Nominal growth) / (1 + Inflation) - 1] x 100

Worked example

With the default values below, Inflation Rate Calculator returns Annualised inflation rate of 5.19%. Change any input above and every figure here is recalculated in your browser.

Inputs used

Current price index
186.4
Price index a year earlier
177.2
Months between the two readings
12
Nominal wage growth over the same period
6.5

Results

Annualised inflation rate
5.19%
Inflation over the period
5.19%
Real wage growth
1.24%
Purchasing power lost
4.94%

Step by step

  1. 1Values used
  2. 2Period inflation
  3. 3Annualised
  4. 4Real wage growth
  5. 5Annualised inflation rate= 5.19
  6. 6Inflation over the period= 5.19
  7. 7Real wage growth= 1.24
  8. 8Purchasing power lost= 4.94

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or fees or charges into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Indicative estimate only. Fees, entitlements, limits and formulas vary by jurisdiction, statute, policy wording and the facts of the case. This is not legal, tax, insurance or financial advice — confirm with a qualified professional or the relevant authority.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Indicative estimate only. Fees, entitlements, limits and formulas vary by jurisdiction, statute, policy wording and the facts of the case. This is not legal, tax, insurance or financial advice — confirm with a qualified professional or the relevant authority.

Frequently Asked Questions

Why annualise?

So that a three-month or six-month change is comparable with a twelve-month rate. Comparing raw period changes across different intervals is meaningless.

Headline or core inflation?

Headline includes food and energy and is what households experience. Core strips them out and is what central banks target because it is less volatile.

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