True cost of a mortgage when considering inflation
How do you calculate the rate of inflation?
To use the formula:
- Subtract A from B to find out how much the price of that specific good or service has changed.
- Then divide the result by A (the starting price) which will leave you with a decimal number.
- Convert the decimal number into a percentage by multiplying it by 100. The result is the rate of inflation!
What is the expected inflation rate for 2021?
3.41 percent
As of July 2021, the inflation rate for the United States was forecast to reach 3.41 percent in 2021, and 2.67 percent in 2022.
What is the expected inflation rate for the next 5 years?
3.00%
US Expected Change in Inflation Rates: Next 5 Years is at 3.00%, compared to 3.00% last month and 3.00% last year. This is lower than the long term average of 3.21%.
What is the best indicator of inflation?
the Consumer Price Index (CPI)
The most well-known indicator of inflation is the Consumer Price Index (CPI), which measures the percentage change in the price of a basket of goods and services consumed by households.