• CP is the current price ($) • R is the inflation rate (%) ## How to Calculate Reverse Inflation? The following example problems outline how to calculate Reverse Inflation. Example Problem #1: 1. First, determine the current price ($).
• The current price ($) is given as: 500. 2. Next, determine the inflation rate (%). • The inflation rate (%) is provided as: 10. 3. Finally, calculate the Reverse Inflation using the equation above: IP = CP / (1+R/100) The values given above are inserted into the equation below and the solution is calculated: IP = 500 / (1+10/100) = 454.54 ($)

Example Problem #2:

For this problem, the variables required are provided below:

current price (\$) = 600

inflation rate (%) = 20