Exchange and Inflation Rate calculations (1 Viewer)

[dolphy-chan]

HELP!!

I fail at economics big time, shouldn't have chosen it, but now I haven't got much of a choice...anyway...
Can someone explain to me how to calculate inflation? I am going through a past trial paper and it came up. Am I correct in thinking its just the difference of the CPI between years multiplied by 100? Or am I completely off?

Kind Regards,

Dolphy

 

[blaze.bluetane]

Year 2 CPI - Year 1 CPI
----------------------------- x 100= Inflation Rate
Year 1 CPI

 

[dolphy-chan]

thanks heaps!

just making sure, the value of $A before the exchange rate, is that the real GDP?