How to use it
- Use the formula below with your own figures.
The formula
Change = (CPI end − CPI start) ÷ CPI start.
Worked example
It expresses how much a basket's price changed.
Frequently asked questions
What is CPI?
A price index for a basket of goods.
Where to find it?
National statistics agencies publish it.
Tips
- Compare money across years in real terms.
- Hold assets that grow at or above inflation.
- Cash quietly loses value when prices rise.
Key terms
- CPI
- A price index for a basket of goods.
- Real return
- Return after inflation.
- Purchasing power
- What a sum can actually buy.