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Google Sheets Inflation Formula (How to Use It in 2024)

May 8, 2024

Google Sheets Inflation Formula

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:

google sheets inflation formula

How to Use the Google Sheets Inflation Formula

Follow the steps below to use the Google Sheets inflation formula. 

1. Gather CPI Data for Two Time Periods

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:

  • Last Year (A) with a CPI of 240
  • This Year (B) with a CPI of 248

Input the CPI values into Google Sheets. 

2. Calculate Inflation Rate Using the Formula in 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.

3. Review and Interpret the Calculated Inflation Rate

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. 

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