Yahoo Answers: Answers and Comments for Economics question to help me understand? [Economics]
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From superstar
enPH
Tue, 28 Sep 2010 16:00:19 +0000
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Yahoo Answers: Answers and Comments for Economics question to help me understand? [Economics]
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From jerry w: Inflation cannot be computed simply by subtrac...
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Wed, 29 Sep 2010 06:08:04 +0000
Inflation cannot be computed simply by subtracting one year's CPI from the next year's CPI. These numbers are based on a base year of 100, and you are asked for the change from one year to the next, in this case none of which are the base year.
What you have to do for each year: take the CPI, divide by the previous year's CPI, and then take that number times 100 (for percentage), then subtract 100 from that number (so that it reflects only growth in CPI). This will give you the percentage growth in CPI for that year, which is the measure of inflation. If it is positive (and all of these are, by the way), then it would be inflation; if it is negative, it would be deflation (none are). Hyperinflation would be a very large number for inflation. I'm not sure what the actual definition is for one year, but if you saw a CPI jump very high from one year to the next, such as doubling or more, that would be hyperinflation (none here, by the way).
For example, from 1988 to 1989: take ((124.0/118.3)x100)100, you get 4.82. So inflation for 1989 would be 4.82%. To finish answering the question, you would need to do these calculations for each year.

From Anjaree: The inflation rates are
5.7,6.7,5.7,4.1,4.2,3...
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Wed, 29 Sep 2010 00:54:08 +0000
The inflation rates are
5.7,6.7,5.7,4.1,4.2,3.7,4.2,4.5,3.6,2.5,3.6,5.6,4.9,2.8,4.1,4.9,6.4,6.5.
There is no hyperinflation,or deflation, GOD BLess.
But I doubted that these data are real. because we had the deflation right now announced by the FED last week. From your data, there are rates above the target rate of 2%, but it is not regarded as a Zimbabwe's hyperinflation. It is just a normal inflation.