To calculate inflation in Google Sheets, you can use a formula based on the Consumer Price Index (CPI) or any other relevant price index data. Inflation measures how much the purchasing power of currency has decreased over a period due to an increase in the prices of goods and services. The formula for calculating the inflation rate between two periods is:
Follow the steps below to use the Google Sheets inflation formula.
First, you need two Consumer Price Index (CPI) values from different time periods. We'll compare the CPI from last year to this year. Our dataset is:
Input the CPI values into Google Sheets.
Now, calculate the inflation rate. In cell C1, enter the formula to compute the percentage change in CPI, which is =(B3-B2)/B2*100. This formula calculates the inflation rate from last year to this year.
The formula's output is the inflation rate between the two periods. It shows how much prices have increased over the year. If you follow our example, you'll find an inflation rate of approximately 3.33%.
We hope that you now have a better understanding of how to use the Google Sheets inflation formula. If you enjoyed this article, you might also like our article on how to make a correlation matrix in Google Sheets or our article on how to calculate profit margin in Google Sheets.
