Enter the current inflation rate (%) and the past inflation rate (%) into the Deflation Rate Calculator. The calculator will evaluate the Deflation Rate.
Deflation Rate Formula
The following two example problems outline the steps and information needed to calculate the Deflation Rate.
DR = (I2-I1) / I2*100
- Where DR is the Deflation Rate (%)
- I1 is the current inflation rate (%)
- I2 is the past inflation rate (%)
To calculate the deflation rate, divide the change in inflation by the previous period of inflation, then multiply by 100.
How to Calculate Deflation Rate?
The following example problems outline how to calculate Deflation Rate.
Example Problem #1:
- First, determine the current inflation rate (%).
- The current inflation rate (%) is given as: 5.
- Next, determine the past inflation rate (%).
- The past inflation rate (%) is provided as: 4.
- Finally, calculate the Deflation Rate using the equation above:
DR = (I2-I1) / I2*100
The values provided above are inserted into the equation below and computed.
DR = (5-4) / 5*100 = 20.00 (%)
Example Problem #2:
For this problem, the variables required are provided below:
current inflation rate (%) = 6
past inflation rate (%) = 4
Test your knowledge using the equation and check your answer with the calculator..
DR = (I2-I1) / I2*100 = ?
