You might be interested in calculating the value of ₹1 for the year 2003. Or calculate the value of ₹1 for the year 2008
.₹1 in 1998 is worth ₹4.99 today.
The value of ₹1 from 1998 to 2022
₹1 in 1998 has the purchasing power of about ₹4.99 today, a ₹3.99 increase in 24 years. Between 1998 and today, the rupee experienced an average annual inflation rate of 6.93%, resulting in a cumulative price increase of 399.44%.
According to the Bureau of Labor Statistics consumer price index, today's prices are several times higher than the average price since 1998.
In 1998, the inflation rate was 13.2308%. 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 1998 to 2022
| Summary | Value |
|---|---|
| Cumulative price change (from 1998 to today) | 399.44% |
| Average inflation rate (from 1998 to today) | 6.93% |
| Converted amount | ₹4.99 |
| Price Difference | ₹3.99 |
| CPI in 1998 | 1851.75 |
| CPI in 2022 | 9248.3472 |
| Inflation in 1998 | 13.2308% |
| Inflation in 2022 | 6.08% |
| ₹1 in 1998 | ₹4.99 in 2022 |
Buying power of ₹1 in 1998
If you had ₹1 in your hand in 1998, its adjusted value for inflation today would be ₹4.99. Put another way, you would need ₹4.99 to beat the rising inflation. When ₹1 becomes equivalent to ₹4.99 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 1998 rupees, it's evident how ₹1 loses its worth over 24 years.
Rupee inflation for ₹1 from 1998 to 2022
The below tabular column shows the effect of inflation on ₹1 in the year 1998 to the year 1998.
| Year | Rupee Value | Inflation Rate |
|---|---|---|
| 1998 | 1 | 13.2308% |
| 1999 | 1.05 | 4.6698% |
| 2000 | 1.09 | 4.0094% |
| 2001 | 1.13 | 3.77% |
| 2002 | 1.18 | 4.30% |
| 2003 | 1.22 | 3.81% |
| 2004 | 1.27 | 3.7673% |
| 2005 | 1.32 | 4.2463% |
| 2006 | 1.4 | 5.7965% |
| 2007 | 1.49 | 6.3729% |
| 2008 | 1.61 | 8.3493% |
| 2009 | 1.79 | -0.36% |
| 2010 | 2 | 1.64% |
| 2011 | 2.18 | 8.91% |
| 2012 | 2.39 | 9.47% |
| 2013 | 2.63 | 10.01% |
| 2014 | 2.8 | 6.66% |
| 2015 | 2.94 | 4.907% |
| 2016 | 3.09 | 4.95% |
| 2017 | 3.19 | 3.33% |
| 2018 | 3.31 | 3.94% |
| 2019 | 3.44 | 3.73% |
| 2020 | 3.67 | 6.62% |
| 2021 | 3.85 | 5.13% |
| 2022 | 4.09 | 6.08% |
Conversion of 1998 rupees to today's price
Based on the 399.44% change in prices, the following 1998 amounts are shown in today's rupees:
| Initial value | Today value |
|---|---|
| ₹1 rupee in 1998 | ₹4.99 rupees today |
| ₹5 rupees in 1998 | ₹24.97 rupees today |
| ₹10 rupees in 1998 | ₹49.94 rupees today |
| ₹50 rupees in 1998 | ₹249.72 rupees today |
| ₹100 rupees in 1998 | ₹499.44 rupees today |
| ₹500 rupees in 1998 | ₹2497.19 rupees today |
| ₹1,000 rupees in 1998 | ₹4994.38 rupees today |
| ₹5,000 rupees in 1998 | ₹24971.91 rupees today |
| ₹10,000 rupees in 1998 | ₹49943.82 rupees today |
| ₹50,000 rupees in 1998 | ₹249719.11 rupees today |
| ₹100,000 rupees in 1998 | ₹499438.22 rupees today |
| ₹500,000 rupees in 1998 | ₹2497191.09 rupees today |
| ₹1,000,000 rupees in 1998 | ₹4994382.18 rupees today |
How to calculate the inflated value of ₹1 in 1998
To calculate the change in value between 1998 and today, we use the following inflation rate formula:
CPI Today / CPI in 1998 x Rupee Value in 1998 = Current Rupee Value
By plugging the values into the formula above, we get:
9248.3472/ 1851.75 x ₹1 = ₹4.99
To buy the same product that you could buy for ₹1 in 1998, you would need ₹4.99 in 2022.
To calculate the cumulative or total inflation rate in the past 24 years between 1998 and 2022, we use the following formula:
CPI in 2022 - CPI in 1998 / CPI in 1998 x 100 = Cumulative Inflation Rate
By inserting the values to this equation, we get:
( 9248.3472 - 1851.75 / 1851.75) x 100 = 399.44%
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 24 years between 2022 and 1998. The average inflation rate was 6.9309455587041%.
Plugging in the values into the formula, we get:
1 (1+ % 6.93/ 100 ) ^ 24 = ₹4.99