## YoY Rate

Subtype of Quote TypeThe reference index value at any time

**is defined as the annual inflation rate**

*t***given by the formula:**

*r(t)*r(t) = I(t)/I(t-1Year) - 1

where

**is the raw inflation index at time**

*I(t)*

*t*The meaning of the various quantities is as in the relative index Relative

Note, this index does not require knowledge of some base value

**, as the relative index does.**

*I(tâ‚€)*Also the raw inflation index

**does not need to be known since only the rate expression**

*I(t)***is relevant in calculating cash flow amounts that are contingent on a year-on-year inflation rate.**

*r(t)*