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A = 100 (Last year price of an item)

B = 125 (Current year price of the same item)

Inflation = ((B-A/A)*100)

= ((125-100/100)*100)

= 25%

Same formula for Deflation. But will be negative. (100-125) = (-25 / 125) * 100 = -20%

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14y ago

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