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** = ?**