This calculator uses the CAGR formula to calculate inflation, which accounts for compounding:
Inflation Rate = (End Price ÷ Start Price)^(1 ÷ Years) − 1
CAGR gives a more accurate measure than simple rate because it accounts for compounding over time. It answers: "At what steady annual rate did prices grow?"
What does a negative rate mean?
A negative inflation rate means deflation — prices decreased over the period. This is rare but can happen in specific commodities or economic conditions.
What's the difference between CAGR and simple rate?
Simple rate divides total change evenly across years, ignoring compounding. CAGR calculates the true compounded annual rate — more accurate for multi-year comparisons.
Can I use months or quarters?
Yes! Select Months or Quarters and the calculator automatically converts to an annualised rate for easy comparison.