How to Calculate Inflation Rate in India?

How to Calculate Inflation?

What Are the Examples of Calculating Inflation Using CPI?

How to Calculate Inflation Using GDP?

What Are Some Examples of Calculating Inflation Using GDP?

What Does a 100% Inflation Rate Mean?

FAQs About Best Approaches to Calculate Inflation Rate in an Economy

What are the main indicators for measuring inflation rate in India? up-arrow

There are two major indicators for measuring the rate in India are Wholesale Price Index (WPI) and Consumer Price Index (CPI).

How to calculate the inflation rate over 10 years? up-arrow

While calculating the inflation rate over 10 years, you have to subtract the CPI of 10 years back from the CPI of the present year and divide that numeral by the CPI of 10 years back. Then, multiply the result by 100 to determine the exact inflation rate.

What is the ideal inflation rate for an economy? up-arrow

As per economists, an ideal rate of inflation in an economy ranges between 2% and 3% since it encourages individuals to purchase more and borrow more.