Question: how to calculate percentage change in inflation rate?
Answer: The rate of inflation is the % change in the price index from one year to another.
So if in one year the price index is 104.1 and a year later the price index has risen to 112.5, then the annual rate of inflation = (112.5 – 104.1) divided by 104.1 x 100. Thus the rate of inflation = 8.07%.