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The Scenario Inflation Rate is used when calculating Activity Cost for Scenarios. For more information, see About Activity Cost for Scenarios. The Inflation Rate is a percentage compounded to an Activity's cost over the course of Plan Years.
A Trigger for the Activity Clean is set up with a cost of $100.00. The Scenario's Inflation Rate is 5 (which is 5%). The Activity's cost is affected by the Plan Year being processed.
The Activity cost of Clean during the first 3 Plan Years in a Scenario would look like the following:
In Plan Year 1: $100.00 (no inflation the first year)
In Plan Year 2: $100.00 + ($100.00 * 5%) = $105.00
In Plan Year 3: $105.00 + ($105.00 * 5%) = $110.25
In Plan Year 4: $110.25 + ($110.25 * 5%) = $115.77
An empty or 0 (which is 0%) Inflation Rate results in no inflation being applied to an Activity's cost.