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Rate of inflation = (current CPI - end-of-year CPI)/ end-of-year CPI

CPI = consumer price index

Example: The CPI for Sept. was 315.

The CPI at the end of 2023 was 306.

315 - 306 = 9

9/306 = 2.94% annual inflation.

Inflation of 3% doesn't mean prices have risen 3% in one month, but that prices have risen 3% since the end of December.

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