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How do you calculate inflation index?

To calculate inflation using the consumer price index, or CPI, subtract the CPI of the previous year from the CPI of the current year, divide the result by the CPI of the previous year, and then multiply the outcome by 100, explains the University of Colorado Boulder.

What is the current inflation rate in the US?

Current US Inflation Rates: 2009-2019. The annual inflation rate for the United States is 2.1% for the 12 months ended November 2019, compared to 1.8% previously, according to U.S. Labor Department data published December 11, 2019. Dec 11 2019

How does inflation affect real exchange rate?

How the exchange rate affects inflation If there is a depreciation in the exchange rate, it is likely to cause inflation to increase. An appreciation in the exchange rate will tend to reduce inflation.

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