Grocery Inflation Calculator
Measure how much your regular grocery basket has risen in price and see the yearly rate from the same monthly basket.
Recent
Formula
How the calculation works
The calculator subtracts the earlier basket cost from the current one to get the cash increase.
It divides that increase by the earlier cost and multiplies by one hundred to express the change as a percentage.
That percentage is then scaled by twelve divided by the number of months to give an annualised inflation rate.
Common mistakes
- Comparing baskets with different items, since a change in what is inside the basket distorts the inflation figure.
- Forgetting that seasonal vegetables swing widely, so a rise in one month often reverses in the next and the short term figure should not be overread.
When to use it
- Households use it to track the real rise in the cost of their own shopping rather than the national average published in the news.
- Budget planners use it to decide how much to raise the monthly grocery allowance for a family.
Worked example
If the same basket cost 5000 taka before and now costs 5500 taka, the increase is 500 taka, the inflation is 10 percent and over a 12 month period the annualised rate is 10 percent.
Common questions
Why annualise the figure?
Annualising puts a short period on a comparable yearly scale, so a one month change can be compared with the yearly inflation figures quoted in the news.
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