Using the monthly inflation rates from usinflationcalculator/inflation/historical-inflation-rates/ find the geometric mean for the past 60 months. How does the geometric mean compare to the inflation rate
To find the geometric mean of the monthly inflation rates for the past 60 months using the data from US Inflation Calculator, follow these steps:
1. Visit the website usinflationcalculator.com/inflation/historical-inflation-rates, or any other reliable source that provides the monthly inflation rates.
2. Retrieve the monthly inflation rates for the past 60 months. Ensure that the rates are expressed in percentage form.
3. To calculate the geometric mean, use the following formula:
Geometric mean = (rate1 * rate2 * rate3 * ... * rate60) ^ (1/60)
In the formula, "rate1" represents the first monthly inflation rate, "rate2" represents the second monthly inflation rate, and so on.
4. Calculate the geometric mean using the formula mentioned in step 3. Ensure that all the monthly inflation rates are multiplied together, and then raise the product to the power of 1/60 (or simplify the equation as needed).
Once you calculate the geometric mean, you can compare it to the current inflation rate to assess how they differ.
To find the geometric mean using the monthly inflation rates, follow these steps:
1. Visit the website usinflationcalculator.com or any other reliable source that provides historical inflation rates.
2. Find the monthly inflation rates for the past 60 months. Make sure to only consider the monthly rates and not the annual rates.
3. Calculate the geometric mean by multiplying all the 60 monthly inflation rates together, and then taking the 60th root of the result.
Once you have calculated the geometric mean, you can compare it to the inflation rate. The geometric mean provides a measure of the average rate of change over the 60-month period. If the geometric mean is higher than the inflation rate, it suggests that inflation has been accelerating during that time. Conversely, if the geometric mean is lower than the inflation rate, it indicates a deceleration in inflation.
Remember that the geometric mean is a single value that represents the compounded average rate of change, while the inflation rate refers to the rate of price increase during a specific time period. Comparing the two values can give insights into the overall trend of inflation over the past 60 months.