Enter the current price (\$) and the inflation rate (%) into the Reverse Inflation Calculator. The calculator will evaluate and display the initial price before inflation.

## Reverse Inflation Formula

The following formula is used to calculate the Reverse Inflation.

IP = CP / (1+R/100)

• Where IP is the initial price before inflation (\$)
• 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

Test your knowledge using the equation and check your answer with the calculator above.

IP = CP / (1+R/100) = ?