# Formula for applying 6-monthly price increases based on annual inflation rates

Discussion in 'Business Applications' started by quickvet7, Jan 30, 2013.

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Joined:
Jan 30, 2013
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Dear Tech Guy/s
I work in veterinary practice.
I want to apply 6-monthly price increases across-the-board based on the annual inflation rate for the preceding 12 months.

Can you help with the formula I need to construct?

i.e. where

C = current price
N = new price at 6 months = current price + percentage increase required
I = Known Inflation figure for the preceding 12 months (percentage)

Cheers
quickvet7

2. ### etafModerator

Joined:
Oct 2, 2003
Messages:
65,252
First Name:
Wayne
if you just want to increase by the inflation percentage then

depending on how the percent is formatted
say inflation was 2.3%
is the cell 2.3 formatted as a percent
or 0.023
or just as 2.3 in a cell
you need it to be a % so 0.023
and therefore may need to divide by 100
N = C * (1+ I )
OR

N = C* (1 + ( I/100 ))

in the example N = C * 1.023

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