Inflation Rate Definition:
According to Prof. Rowan, inflation is the process of increasing prices continuously.
Rowan formula for calculating percentage rate of inflation= P(t)= {∆pP(t)/P(t-1)}×100
Where, ∆P(t)=P(t)-p(t-1)
P= Price Level
(t), (t-1)= Time periods
WPI( Holesale price Index).
Aplication of the formula: Ex:-
Year. WPI. {∆pP(t)/P(t-1)}×100 Inflation Rate
2002-03. 174. ----- ------
2003-04. 181. {(181-174)/174}×100 4.02
2004-05. 188. {(188-181)/181}×100. 3.87
