You might be interested in calculating the value of ₹1 for the year 1996. Or calculate the value of ₹1 for the year 2001
.₹1 in 1991 is worth ₹9.75 today.
The value of ₹1 from 1991 to 2022
₹1 in 1991 has the purchasing power of about ₹9.75 today, a ₹8.75 increase in 31 years. Between 1991 and today, the rupee experienced an average annual inflation rate of 7.62%, resulting in a cumulative price increase of 874.57%.
According to the Bureau of Labor Statistics consumer price index, today's prices are several times higher than the average price since 1991.
In 1991, the inflation rate was 13.8702%. 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 1991 to 2022
| Summary | Value |
|---|---|
| Cumulative price change (from 1991 to today) | 874.57% |
| Average inflation rate (from 1991 to today) | 7.62% |
| Converted amount | ₹9.75 |
| Price Difference | ₹8.75 |
| CPI in 1991 | 948.97 |
| CPI in 2022 | 9248.3472 |
| Inflation in 1991 | 13.8702% |
| Inflation in 2022 | 6.08% |
| ₹1 in 1991 | ₹9.75 in 2022 |
Buying power of ₹1 in 1991
If you had ₹1 in your hand in 1991, its adjusted value for inflation today would be ₹9.75. Put another way, you would need ₹9.75 to beat the rising inflation. When ₹1 becomes equivalent to ₹9.75 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 1991 rupees, it's evident how ₹1 loses its worth over 31 years.
Rupee inflation for ₹1 from 1991 to 2022
The below tabular column shows the effect of inflation on ₹1 in the year 1991 to the year 1991.
| Year | Rupee Value | Inflation Rate |
|---|---|---|
| 1991 | 1 | 13.8702% |
| 1992 | 1.12 | 11.79% |
| 1993 | 1.19 | 6.33% |
| 1994 | 1.31 | 10.25% |
| 1995 | 1.44 | 10.22% |
| 1996 | 1.57 | 8.9772% |
| 1997 | 1.69 | 7.1643% |
| 1998 | 1.91 | 13.2308% |
| 1999 | 2 | 4.6698% |
| 2000 | 2.08 | 4.0094% |
| 2001 | 2.16 | 3.77% |
| 2002 | 2.25 | 4.30% |
| 2003 | 2.34 | 3.81% |
| 2004 | 2.42 | 3.7673% |
| 2005 | 2.53 | 4.2463% |
| 2006 | 2.67 | 5.7965% |
| 2007 | 2.84 | 6.3729% |
| 2008 | 3.08 | 8.3493% |
| 2009 | 3.42 | -0.36% |
| 2010 | 3.83 | 1.64% |
| 2011 | 4.17 | 8.91% |
| 2012 | 4.56 | 9.47% |
| 2013 | 5.02 | 10.01% |
| 2014 | 5.35 | 6.66% |
| 2015 | 5.62 | 4.907% |
| 2016 | 5.9 | 4.95% |
| 2017 | 6.09 | 3.33% |
| 2018 | 6.33 | 3.94% |
| 2019 | 6.57 | 3.73% |
| 2020 | 7 | 6.62% |
| 2021 | 7.36 | 5.13% |
| 2022 | 7.81 | 6.08% |
Conversion of 1991 rupees to today's price
Based on the 874.57% change in prices, the following 1991 amounts are shown in today's rupees:
| Initial value | Today value |
|---|---|
| ₹1 rupee in 1991 | ₹9.75 rupees today |
| ₹5 rupees in 1991 | ₹48.73 rupees today |
| ₹10 rupees in 1991 | ₹97.46 rupees today |
| ₹50 rupees in 1991 | ₹487.28 rupees today |
| ₹100 rupees in 1991 | ₹974.57 rupees today |
| ₹500 rupees in 1991 | ₹4872.83 rupees today |
| ₹1,000 rupees in 1991 | ₹9745.67 rupees today |
| ₹5,000 rupees in 1991 | ₹48728.34 rupees today |
| ₹10,000 rupees in 1991 | ₹97456.69 rupees today |
| ₹50,000 rupees in 1991 | ₹487283.43 rupees today |
| ₹100,000 rupees in 1991 | ₹974566.87 rupees today |
| ₹500,000 rupees in 1991 | ₹4872834.34 rupees today |
| ₹1,000,000 rupees in 1991 | ₹9745668.67 rupees today |
How to calculate the inflated value of ₹1 in 1991
To calculate the change in value between 1991 and today, we use the following inflation rate formula:
CPI Today / CPI in 1991 x Rupee Value in 1991 = Current Rupee Value
By plugging the values into the formula above, we get:
9248.3472/ 948.97 x ₹1 = ₹9.75
To buy the same product that you could buy for ₹1 in 1991, you would need ₹9.75 in 2022.
To calculate the cumulative or total inflation rate in the past 31 years between 1991 and 2022, we use the following formula:
CPI in 2022 - CPI in 1991 / CPI in 1991 x 100 = Cumulative Inflation Rate
By inserting the values to this equation, we get:
( 9248.3472 - 948.97 / 948.97) x 100 = 874.57%
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 31 years between 2022 and 1991. The average inflation rate was 7.6210313770618%.
Plugging in the values into the formula, we get:
1 (1+ % 7.62/ 100 ) ^ 31 = ₹9.75