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<strong>The</strong> Rate <strong>of</strong> <strong>Inflation</strong><br />
<strong>The</strong> percentage increase in prices compared to<br />
prices a year earlier<br />
Demonstrated by how fast the CPI rises each<br />
year<br />
Formula:<br />
RATE OF<br />
= Current CPI - Previous Year’s CPI<br />
INFLATION Previous Year’s CPI<br />
X100<br />
Copyright © 2005 Brian Raposo
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