2004 and the inflation rate is 4% annually
To calculate the inflation rate for the year 2004, you need to know the Consumer Price Index (CPI) for that year and the CPI for the previous year. The CPI measures the change in the average price level of a basket of goods and services commonly purchased by households.
As you mentioned that the inflation rate is 4% annually, we can assume that the inflation rate is constant throughout the year. To calculate the inflation rate for 2004, follow these steps:
1. Find the CPI for 2004: You can look up the CPI data from reliable sources such as the Bureau of Labor Statistics (BLS) website or other trusted economic databases. Let's assume the CPI for 2004 is 200.
2. Find the CPI for the previous year (2003): Similarly, look up the CPI for the previous year, which in this case is 2003. Let's assume the CPI for 2003 is 192.
3. Calculate the inflation rate: Use the following formula to calculate the annual inflation rate:
Inflation Rate = ((CPI for 2004 - CPI for 2003) / CPI for 2003) * 100
In our example, the inflation rate for 2004 would be:
((200 - 192) / 192) * 100 = (8 / 192) * 100 = 4.17%
Therefore, the inflation rate for the year 2004, assuming a 4% annual rate, is approximately 4.17%.