Inflation Rate
Percentage increase in price level year-over-year.
Formula
Inflation Rate = ((CPI This Year − CPI Last Year) ÷ CPI Last Year) × 100
Real World
The UK CPI rose from roughly 108 to 120 between 2021 and 2022, giving an inflation rate of around 11% — a figure the Bank of England cited when raising interest rates repeatedly throughout 2022–23.
Exam Focus
If given index numbers in data-response questions, show the percentage change calculation explicitly to secure method marks.
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