Calculating inflation and a price index

1.Calculating inflation:
Real GDP= nominal GDP after allowing for inflation.
The inflation rate is the rate of increase in the General price level [The cost of living].This measures using a price index
2.Calculating a price index
*Choose a base year .
*Choose a number of goods and services
To put in the "Basket of goods".[The typical things which an ordinary family buys]
*Calculate the average price of the contents of the basket.
*Average price for the base year will be expressed as the index number 100.
*Calculate data for other years and compare with the base years