What is inflation rate in SAP EPM-NOV-SWP - Percipient?

SAP Term: inflation rate

• Component: EPM-NOV-SWP

• Component Name: Percipient

• Description: A factor used to calculate cost increase year over year.

Smart SAP Assistant

• Key Concepts: 
  Inflation rate is a measure of the rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling. It is calculated by taking the difference between the current price level and the price level from a year ago, divided by the price level from a year ago. 
  
  How to use it: 
  In SAP EPM-NOV-SWP Percipient, inflation rate can be used to calculate the expected future cost of goods and services. This can be done by multiplying the current cost of goods and services by the inflation rate. This will give you an estimate of what the cost will be in the future. 
  
  Tips & Tricks: 
  When calculating inflation rate in SAP EPM-NOV-SWP Percipient, it is important to remember that inflation rate is not constant and can vary from year to year. Therefore, it is important to use an average inflation rate over a period of time when making calculations. 
  
  Related Information: 
  Inflation rate can also be used to calculate real interest rates, which are used to compare different investments over time. Real interest rates take into account the effect of inflation on investments and are therefore more accurate than nominal interest rates.