You might be interested in calculating the value of ₹1 for the year 1995. Or calculate the value of ₹1 for the year 2000
.₹1 in 1990 is worth ₹11.06 today.
The value of ₹1 from 1990 to 2022
₹1 in 1990 has the purchasing power of about ₹11.06 today, a ₹10.06 increase in 32 years. Between 1990 and today, the rupee experienced an average annual inflation rate of 7.8%, resulting in a cumulative price increase of 1006.26%.
According to the Bureau of Labor Statistics consumer price index, today's prices are several times higher than the average price since 1990.
In 1990, the inflation rate was 8.9712%. 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 1990 to 2022
Summary | Value |
---|---|
Cumulative price change (from 1990 to today) | 1006.26% |
Average inflation rate (from 1990 to today) | 7.8% |
Converted amount | ₹11.06 |
Price Difference | ₹10.06 |
CPI in 1990 | 836 |
CPI in 2022 | 9248.3472 |
Inflation in 1990 | 8.9712% |
Inflation in 2022 | 6.08% |
₹1 in 1990 | ₹11.06 in 2022 |
Buying power of ₹1 in 1990
If you had ₹1 in your hand in 1990, its adjusted value for inflation today would be ₹11.06. Put another way, you would need ₹11.06 to beat the rising inflation. When ₹1 becomes equivalent to ₹11.06 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 1990 rupees, it's evident how ₹1 loses its worth over 32 years.
Rupee inflation for ₹1 from 1990 to 2022
The below tabular column shows the effect of inflation on ₹1 in the year 1990 to the year 1990.
Year | Rupee Value | Inflation Rate |
---|---|---|
1990 | 1 | 8.9712% |
1991 | 1.14 | 13.87% |
1992 | 1.27 | 11.79% |
1993 | 1.35 | 6.33% |
1994 | 1.49 | 10.25% |
1995 | 1.64 | 10.22% |
1996 | 1.79 | 8.9772% |
1997 | 1.92 | 7.1643% |
1998 | 2.17 | 13.2308% |
1999 | 2.28 | 4.6698% |
2000 | 2.37 | 4.0094% |
2001 | 2.46 | 3.77% |
2002 | 2.56 | 4.30% |
2003 | 2.66 | 3.81% |
2004 | 2.76 | 3.7673% |
2005 | 2.88 | 4.2463% |
2006 | 3.04 | 5.7965% |
2007 | 3.24 | 6.3729% |
2008 | 3.51 | 8.3493% |
2009 | 3.89 | -0.36% |
2010 | 4.36 | 1.64% |
2011 | 4.75 | 8.91% |
2012 | 5.2 | 9.47% |
2013 | 5.72 | 10.01% |
2014 | 6.1 | 6.66% |
2015 | 6.4 | 4.907% |
2016 | 6.71 | 4.95% |
2017 | 6.94 | 3.33% |
2018 | 7.21 | 3.94% |
2019 | 7.48 | 3.73% |
2020 | 7.97 | 6.62% |
2021 | 8.38 | 5.13% |
2022 | 8.89 | 6.08% |
Conversion of 1990 rupees to today's price
Based on the 1006.26% change in prices, the following 1990 amounts are shown in today's rupees:
Initial value | Today value |
---|---|
₹1 rupee in 1990 | ₹11.06 rupees today |
₹5 rupees in 1990 | ₹55.31 rupees today |
₹10 rupees in 1990 | ₹110.63 rupees today |
₹50 rupees in 1990 | ₹553.13 rupees today |
₹100 rupees in 1990 | ₹1106.26 rupees today |
₹500 rupees in 1990 | ₹5531.31 rupees today |
₹1,000 rupees in 1990 | ₹11062.62 rupees today |
₹5,000 rupees in 1990 | ₹55313.08 rupees today |
₹10,000 rupees in 1990 | ₹110626.16 rupees today |
₹50,000 rupees in 1990 | ₹553130.81 rupees today |
₹100,000 rupees in 1990 | ₹1106261.63 rupees today |
₹500,000 rupees in 1990 | ₹5531308.13 rupees today |
₹1,000,000 rupees in 1990 | ₹11062616.27 rupees today |
How to calculate the inflated value of ₹1 in 1990
To calculate the change in value between 1990 and today, we use the following inflation rate formula:
CPI Today / CPI in 1990 x Rupee Value in 1990 = Current Rupee Value
By plugging the values into the formula above, we get:
9248.3472/ 836 x ₹1 = ₹11.06
To buy the same product that you could buy for ₹1 in 1990, you would need ₹11.06 in 2022.
To calculate the cumulative or total inflation rate in the past 32 years between 1990 and 2022, we use the following formula:
CPI in 2022 - CPI in 1990 / CPI in 1990 x 100 = Cumulative Inflation Rate
By inserting the values to this equation, we get:
( 9248.3472 - 836 / 836) x 100 = 1006.26%
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 32 years between 2022 and 1990. The average inflation rate was 7.8004460261095%.
Plugging in the values into the formula, we get:
1 (1+ % 7.8/ 100 ) ^ 32 = ₹11.06