inflation

is there a formula to use for working out inflation (I) in terms of price index now (P2) and price index now (P1) like......
I = (P2 divided by P1 - 1)

thanks for any replies.

Please give some more details on what is your " Price index now(P2) ansd price index now (P1)"
Is it either P2 is the Price of a thing at Time 2 and P1 is the price at Time 1 or is it
P2 is the price based on the Index 2 P1 is based on the Index 1, but both prices are for time now?

no wonder no-one answered B4.
sorry it should read:


is there a formula to use for working out inflation I% in terms of price index now (P2) and price index one year ago (P1) ?

i had P2 + P1 + 1 but think it`s wrong.

ALSO:

what would be the formula that could be used to predict the price index now (P2), if inflation is I%, and the price index one year ago was P1 ?

thanks m8!

Still not sure what you need
What do you mean with PriceIndex, what'S the difference to Price?

If there is none, it's just:

Inflation=(P2/P1 -1)*100
But I don't think you look for that

price ratio it must be then m8 - cheers.

the 2nd question must be a rearrangement of the 1st formula - I don`t know what it is or how do do that - any help please.

cheers.

That'S easy.
You have:
Inflation=(P2/P1 -1)*100
if you look for P2 then it is:

P2=((Inflation/100)+1)*P1

But that's math for a 7th Grade (at least in my country)

maths and physics were and never will be my strong points.

I`m in my 30`s as well - so all this 7th grade etc don`t mean jack to me :rolleyes:

cheers 4 the help m8!!

And I only know things like that by heart 'cause my kids are in around 7th grade ;-)

Btw, if you consider this thread closed, reedit it and put RESOLVED in the topic