You might be interested in calculating the value of ₹1 for the year 1984. Or calculate the value of ₹1 for the year 1989
.₹1 in 1979 is worth ₹29.28 today.
The value of ₹1 from 1979 to 2022
₹1 in 1979 has the purchasing power of about ₹29.28 today, a ₹28.28 increase in 43 years. Between 1979 and today, the rupee experienced an average annual inflation rate of 8.17%, resulting in a cumulative price increase of 2828.36%.
According to the Bureau of Labor Statistics consumer price index, today's prices are several times higher than the average price since 1979.
In 1979, the inflation rate was 6.2757%. Inflation is now 6.08% higher than it was last year. If this figure holds true, ₹1 today will be worth ₹7.08 next year in purchasing power.
Inflation from 1979 to 2022
| Summary | Value |
|---|---|
| Cumulative price change (from 1979 to today) | 2828.36% |
| Average inflation rate (from 1979 to today) | 8.17% |
| Converted amount | ₹29.28 |
| Price Difference | ₹28.28 |
| CPI in 1979 | 315.82 |
| CPI in 2022 | 9248.3472 |
| Inflation in 1979 | 6.2757% |
| Inflation in 2022 | 6.08% |
| ₹1 in 1979 | ₹29.28 in 2022 |
Buying power of ₹1 in 1979
If you had ₹1 in your hand in 1979, its adjusted value for inflation today would be ₹29.28. Put another way, you would need ₹29.28 to beat the rising inflation. When ₹1 becomes equivalent to ₹29.28 over time, the "real value" of a single Indian rupee decreases. In other words, a rupee will pay for fewer items at the store.
This effect explains how inflation gradually erodes the value of a rupee. By calculating the value in 1979 rupees, it's evident how ₹1 loses its worth over 43 years.
Rupee inflation for ₹1 from 1979 to 2022
The below tabular column shows the effect of inflation on ₹1 in the year 1979 to the year 1979.
| Year | Rupee Value | Inflation Rate |
|---|---|---|
| 1979 | 1 | 6.2757% |
| 1980 | 1.11 | 11.35% |
| 1981 | 1.26 | 13.11% |
| 1982 | 1.36 | 7.89% |
| 1983 | 1.52 | 11.87% |
| 1984 | 1.65 | 8.32% |
| 1985 | 1.74 | 5.56% |
| 1986 | 1.89 | 8.73% |
| 1987 | 2.06 | 8.80% |
| 1988 | 2.25 | 9.38% |
| 1989 | 2.41 | 7.07% |
| 1990 | 2.62 | 8.97% |
| 1991 | 2.99 | 13.87% |
| 1992 | 3.34 | 11.79% |
| 1993 | 3.55 | 6.33% |
| 1994 | 3.92 | 10.25% |
| 1995 | 4.32 | 10.22% |
| 1996 | 4.7 | 8.9772% |
| 1997 | 5.04 | 7.1643% |
| 1998 | 5.71 | 13.2308% |
| 1999 | 5.97 | 4.6698% |
| 2000 | 6.21 | 4.0094% |
| 2001 | 6.45 | 3.77% |
| 2002 | 6.73 | 4.30% |
| 2003 | 6.98 | 3.81% |
| 2004 | 7.24 | 3.7673% |
| 2005 | 7.55 | 4.2463% |
| 2006 | 7.99 | 5.7965% |
| 2007 | 8.5 | 6.3729% |
| 2008 | 9.21 | 8.3493% |
| 2009 | 10.21 | -0.36% |
| 2010 | 11.43 | 1.64% |
| 2011 | 12.45 | 8.91% |
| 2012 | 13.63 | 9.47% |
| 2013 | 15 | 10.01% |
| 2014 | 16 | 6.66% |
| 2015 | 16.79 | 4.907% |
| 2016 | 17.62 | 4.95% |
| 2017 | 18.2 | 3.33% |
| 2018 | 18.92 | 3.94% |
| 2019 | 19.62 | 3.73% |
| 2020 | 20.92 | 6.62% |
| 2021 | 22 | 5.13% |
| 2022 | 23.34 | 6.08% |
Conversion of 1979 rupees to today's price
Based on the 2828.36% change in prices, the following 1979 amounts are shown in today's rupees:
| Initial value | Today value |
|---|---|
| ₹1 rupee in 1979 | ₹29.28 rupees today |
| ₹5 rupees in 1979 | ₹146.42 rupees today |
| ₹10 rupees in 1979 | ₹292.84 rupees today |
| ₹50 rupees in 1979 | ₹1464.18 rupees today |
| ₹100 rupees in 1979 | ₹2928.36 rupees today |
| ₹500 rupees in 1979 | ₹14641.8 rupees today |
| ₹1,000 rupees in 1979 | ₹29283.6 rupees today |
| ₹5,000 rupees in 1979 | ₹146418.01 rupees today |
| ₹10,000 rupees in 1979 | ₹292836.02 rupees today |
| ₹50,000 rupees in 1979 | ₹1464180.1 rupees today |
| ₹100,000 rupees in 1979 | ₹2928360.21 rupees today |
| ₹500,000 rupees in 1979 | ₹14641801.03 rupees today |
| ₹1,000,000 rupees in 1979 | ₹29283602.05 rupees today |
How to calculate the inflated value of ₹1 in 1979
To calculate the change in value between 1979 and today, we use the following inflation rate formula:
CPI Today / CPI in 1979 x Rupee Value in 1979 = Current Rupee Value
By plugging the values into the formula above, we get:
9248.3472/ 315.82 x ₹1 = ₹29.28
To buy the same product that you could buy for ₹1 in 1979, you would need ₹29.28 in 2022.
To calculate the cumulative or total inflation rate in the past 43 years between 1979 and 2022, we use the following formula:
CPI in 2022 - CPI in 1979 / CPI in 1979 x 100 = Cumulative Inflation Rate
By inserting the values to this equation, we get:
( 9248.3472 - 315.82 / 315.82) x 100 = 2828.36%
Alternate method to calculate today's value of money after inflation - Using compound interest formula
Given that money changes over time due to inflation, which acts as compound interest, we can use the following formula:
FV = PV (1+i/100)^n
where,
- FV = Future value
- PV = Present value
- i: Average interest rate (inflation)
- n: Number of times the interest is compounded (i.e. # of years)
The future value in this case represents the amount obtained after applying the inflation rate to our initial value. In other words, it indicates how much ₹1 is worth today. We have 43 years between 2022 and 1979. The average inflation rate was 8.1701785140918%.
Plugging in the values into the formula, we get:
1 (1+ % 8.17/ 100 ) ^ 43 = ₹29.28