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The price index in the year 1993 is 60.

The base at 2012 is 100.

The annual nominal interest rate between 1993 and 2012 is 66% on average.

What is the average annual inflation between 1993 and 2012?

I know that

Inflation = $\frac{X_{t+s}-X_t}{X_t}$x$ 100$

where $X_{t+s}$ is the current year and $X_t$ is the year being compared.

However, when I use this formula with $X_{t+s}=100$ (since it is the base of the index) and $X_t=60$, I just get the annual nominal interest rate of 66.6666%.

What did I do wrong here?

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The calculation goes like:

Price index @ 1993 = 60 ==> X_{t+s}=0.6
Price index @ 2012 = 100 ==> X_{t}=1 Number of years from 1993 to 2012 = 2012 -1993 = 19 ==> s=19

$100*((\frac{X_{t+s}}{X_t})^({\frac{1}{s}})-1) = 100*(\frac{1}{0.6} ^{(1/9)}-1)=100*(\sqrt[9]{(5/3)}-1)=5.840007284127$

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