I have been asked to produce a model that shows both the 'real' and 'nominal'' rates of inflation. I have looked on the internet but am still not quite sure how to show this in an Excel model.
Please would someone use the attached modell and show simplistically how this would be calculated.
I've inserted some assumed costs based on the 2009 basis year and provided some empty cells that could be used to show the nominal and real results.
Please feel free to attach you own model, but I would really appreciate someone showing the difference between the two and providing an good/basic explanation as to what the nominal and real results are showing, relative to the basis year used.
Thanks very much.