Inflation Calculator Calculate and compare inflation

Explanation of the Inflation Calculator

What does this calculation do?

With this inflation calculator, you can calculate and compare the inflation for more than 40 countries worldwide. We use the official inflation figures from national statistical offices and the OECD (Organisation for Economic Co-operation and Development).

How to use:

1. Amount:
   Enter an amount to see the effect of inflation. The currency does not matter (dollars, euros, pounds, etc.), as it is about calculating the inflation effect, not currency exchange rates.
2. Country / Inflation figure:
   Choose a country and the type of inflation figure (CPI or HICP) to calculate.
3. 2nd Country / Inflation figure (optional):
   For comparisons, you can choose a second country and type of inflation figure.
4. Period:
   Select the start and end month for your calculation.

This free tool works with actual inflation figures. At global-rates.com, you will find inflation figures based on the Consumer Price Index (CPI) from a large number of countries. The Consumer Price Index is an index figure that reflects the price development of a package of goods and services as typically purchased by all households in a particular country or area.

For countries in the European Union (EU), there is another inflation figure: the European harmonized inflation – Harmonized Index of Consumer Prices (HICP). This index is calculated to compare the development of inflation in different EU countries with each other and with the average inflation in Europe.

Using these CPI and HICP price index figures, we carry out the inflation calculations on this page.

Figure 1: inflation formula (how do you calculate the total inflation over a period?)

Inflation is the percentage change in this consumer price index. Suppose the consumer price index in a specific month is 105.50 and exactly 10 years later it is 139.11. Then this is the formula to calculate the total inflation over these 10 years:

((Consumer Price Index last month - Consumer Price Index first month) / Consumer Price Index first month) * 100

((139.11 - 105.50) / 105.50) * 100 = 31.8578%

Figure 2: inflation adjustment (how do you calculate the required inflation adjustment?)

The amount at inflation adjustment indicates the amount you would need at the end of the specified period to buy the same as with the original amount in the start month. Due to inflation, you will need more money.

Using the same example, we calculate the inflation-adjusted amount of 1,000 at the end of the 10-year period as follows:

Inflation Adjustment = amount * (1 + inflation)

1,000 * (1 + 0.318578) = 1,318.58

Figure 3: purchasing power effect (how do you calculate the effect of inflation on purchasing power?)

This calculation shows how the purchasing power of an amount changes due to inflation. Again, with the same example data: a starting amount of 1,000, what is its purchasing power on the end date, taking into account the inflation? We calculate it like this:

(Consumer Price Index first month / Consumer Price Index last month) * amount

(105.50 / 139.11) X 1,000 = 758.39

Using the inflation calculator

Inflation is an important figure that indicates how much more expensive life has become for an average household. Inflation figures are often used in:

• determining an appropriate pay raise (inflation salary calculator):
  Inflation does not in itself give a right to a pay raise. When determining an appropriate pay raise, multiple factors including inflation are considered. This could be the inflation that has occurred since the last pay raise and/or the inflation expected in the coming period. To not lose purchasing power, the pay raise should normally be at least as high as the inflation. This is also called an inflation adjustment. Also in adjusting the hourly rate of a freelancer and income sources such as pensions, benefits, and alimony, there can be a (usually annual) inflation adjustment.
• determining a price increase:
  When offering a product or service, you have to calculate a price for it. This price is not constant. Especially in the case of high inflation, providers of products and services will increase their prices. If only because the production or offering of the product or service has also become more expensive. Sometimes an annual inflation adjustment is contractually agreed upon when entering into an agreement. You can encounter this, for example, in rental contracts and phone subscriptions.

Inflation development in graph / chart

With the inflation graph, you get a clear picture of how the inflation figures have developed over a certain period. You may use this graph if you want to show others (students, readers) the development of inflation over a certain period, as long as you include a clear source citation.

Comparing inflation figures - different countries

This inflation rates calculator can be very useful for calculating the inflation of a specific country over a certain period. For example, as a UK inflation calculator or US inflation calculator. Additionally, when analyzing historical inflation figures, it can be very handy to compare the inflation of different countries side by side. Think, for example, of comparing British inflation with American inflation, or comparing European inflation figures with inflation in America.

This inflation calculator is a very handy tool for this. Select the countries or areas you want to compare and choose the desired period. In the table, the total inflation per country/area is then displayed. In addition, you will see a clear graph with the monthly inflation figures (annual inflation) of both countries over the period you have chosen.

Disclaimer

The use of this calculator, like all other content on this website, is at your own risk. We accept no responsibility for the accuracy of the data and calculations.