let the initial price be $100.
Increase in price due to inflation = 45%
Increased price = 45% of 100=45
Price after increase = 100+45 =$145
After the increase in price there is a drop in price .
Drop in price due to inflation = 20%
Drop in price = 20% of 145=29
New price = 145-29=116
Total increase in price = 116-100=16
Overall there was an increase of 16%.