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To calculate the cost of a loaf of bread next year considering an inflation rate of 1.8%, you can use the following formula:

\[ \text{Future Price} = \text{Current Price} \times (1 + \text{Inflation Rate}) \]

Given:
- Current Price = \$4.99
- Inflation Rate = 1.8% = 0.018 (as a decimal)

\[ \text{Future Price} = 4.99 \times (1 + 0.018) \]
\[ \text{Future Price} = 4.99 \times 1.018 \]
\[ \text{Future Price} = 5.08 \]

So, you would expect the loaf of bread to cost \$5.08 next year if the price went up with the rate of inflation.

Would you like more details or have any questions?

Here are 5 questions you might want to ask:
1. How is the inflation rate calculated?
2. Can you explain the impact of inflation on purchasing power?
3. What are some common methods to protect against inflation?
4. How does inflation affect interest rates?
5. What are the long-term effects of inflation on the economy?

**Tip:** Always convert percentage rates to decimal form when performing calculations involving percentages.

Learn how to calculate the future price of a product considering inflation. Using an example with a loaf of bread priced at $4.99 and an inflation rate of 1.8%, discover how to compute the expected cost next year. Includes step-by-step calculation and formula explanation.

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