Enter the cost of the market basket in the current period and the cost at a base period to calculate the inflation of the CPI.

Consumer Price Index Formula

The following formula is used to calculate the inflation of CPI over time.

CPI = Ct / C0 * 100
  • Where CPI is the consumer price index
  • Ct is the cost of the market basket in the current period
  • C0 is the cost of the market basket in the base period

The cost of the market basket in the current period refers to the total amount of money required to purchase all the goods and services included in the market basket.

The cost of the market basket in the base period refers to the total expense of purchasing a specific set of goods and services during a particular period that serves as a reference point for comparison in economic analysis.

What is the Consumer Price Index?

The Consumer Price Index (CPI) is a measure used to track changes in the average price of goods and services purchased by households. It helps gauge inflation by comparing the current prices of a basket of commonly bought items to their prices in a selected base period.



consumer price index calculator
consumer price index formula