According to the Office for National Statistics (ONS), which determines the inflation rate, prices increased 2.5 per cent in the year ending in December, down from 2.6 per cent in the previous month.

The real economic growth rate removes inflation in its measurement of economic growth, unlike the nominal GDP growth rate. Real GDP can be calculated by adjusting nominal GDP by inflation.

To use this formula, you need the initial and final ... in the CPI for that specific good or service. To find the inflation rate, divide the difference by the initial value (the value recorded ...