Work out inflation rate instantly with clear inputs, formula shown and shareable results.
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.
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
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.
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 includes food and energy and is what households experience. Core strips them out and is what central banks target because it is less volatile.