1. Input a dollar amount and input 2 different time periods.You can use any dollar amount and any time periods, but choose either the same months or the same years when you are comparing.When you are analyzing the figures it makes more sense to compare $1 inJanuary2000 andJanuary2020, or $1 in January2000and December2000.You may NOT choose the same amount and years that I did.
2. Calculate the inflation rate over your chosen period.(Hint: You may want to look back in the notes for the formula for inflation rate.The inflation calculator uses the CPI to calculate the buying power, so you can use the dollar amounts in place of CPI.Remember it is just the percentage change between 2 numbers.) You must show your calculations.You need to show your numbers plugged into the correct formula.
3. What does the inflation rate tell us about prices.Remember, the inflation rate could be negative depending on your choice of dates.

Go to theCPI Inflation Calculator