function for compound growth rate of CPI over X years

[Vince]

looking for a function to show compound growth rate of inflation over
different sets of consecutive years
Vince

 

[Myrna Larson]

Do you have the CPI data for a series of years? If so, and the percentages for
the last 25 years are in, say, B2:B26, to get the average, use this array
formula

=GEOMEAN(1+B2:B26)-1

Type that formula and hold down CTRL+SHIFT while you press ENTER.

OTOH, if you have the prices of an item in 1975 and in 2000 in A1 and A2,

=(A2/A1)^(1/25)-1

If you are looking for something else, please clarify.

 

[Fred Smith]

Or, if you want to know what the price of something will be given inflation
at x%, use FV:

=FV(#years, x%, current price)

 

[Vince]

Do you have the CPI data for a series of years? If so, and the percentages for
the last 25 years are in, say, B2:B26, to get the average, use this array
formula

=GEOMEAN(1+B2:B26)-1

Type that formula and hold down CTRL+SHIFT while you press ENTER.

OTOH, if you have the prices of an item in 1975 and in 2000 in A1 and A2,

=(A2/A1)^(1/25)-1

If you are looking for something else, please clarify.



Myrna,

The latter was the perfect formula. Thanks
Vince