You can calculate the real interest rate by subtracting the rate of inflation from the nominal interest rate. Here's the formula: Real interest rate = nominal interest rate - rate of inflation ...

Real interest rates are dictated by the rate of inflation. Higher inflation rates erode consumers’ purchasing power and the amount of interest earned from investments such as deposits.

Interest rate parity is the fundamental equation that governs the relationship ... that describes the relationship between inflation and real and nominal interest rates. It asserts that the ...

the real interest rate would be -1.0 percent. Keep in mind that the CPI doesn’t tell the entire story of inflation. The government revised the CPI formula in the 1990s so that it understated the ...