Describe the procedure of applying Specific Inflation Rates? Give an example?

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter13: Inflation
Section: Chapter Questions
Problem 9SQP
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Describe the procedure of applying Specific Inflation Rates? Give an example?

Expert Solution
Step 1

A specific inflation rate can be calculated as :

= ((B-A)/A)*100

Where B is Index value of Current Year,

A is the Index Value of some past year (in relation to which the inflation rate has to be calculated)

 

 

 

 

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