You might be interested in calculating the value of ₹1 for the year 2011. Or calculate the value of ₹1 for the year 2016
.₹1 in 2006 is worth ₹3.34 today.
The value of ₹1 from 2006 to 2022
₹1 in 2006 has the purchasing power of about ₹3.34 today, a ₹2.34 increase in 16 years. Between 2006 and today, the rupee experienced an average annual inflation rate of 7.82%, resulting in a cumulative price increase of 233.52%.
According to the Bureau of Labor Statistics consumer price index, today's prices are several times higher than the average price since 2006.
In 2006, the inflation rate was 5.7965%. 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 2006 to 2022
| Summary | Value |
|---|---|
| Cumulative price change (from 2006 to today) | 233.52% |
| Average inflation rate (from 2006 to today) | 7.82% |
| Converted amount | ₹3.34 |
| Price Difference | ₹2.34 |
| CPI in 2006 | 2772.94 |
| CPI in 2022 | 9248.3472 |
| Inflation in 2006 | 5.7965% |
| Inflation in 2022 | 6.08% |
| ₹1 in 2006 | ₹3.34 in 2022 |
Buying power of ₹1 in 2006
If you had ₹1 in your hand in 2006, its adjusted value for inflation today would be ₹3.34. Put another way, you would need ₹3.34 to beat the rising inflation. When ₹1 becomes equivalent to ₹3.34 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 2006 rupees, it's evident how ₹1 loses its worth over 16 years.
Rupee inflation for ₹1 from 2006 to 2022
The below tabular column shows the effect of inflation on ₹1 in the year 2006 to the year 2006.
| Year | Rupee Value | Inflation Rate |
|---|---|---|
| 2006 | 1 | 5.7965% |
| 2007 | 1.06 | 6.3729% |
| 2008 | 1.15 | 8.3493% |
| 2009 | 1.28 | -0.36% |
| 2010 | 1.43 | 1.64% |
| 2011 | 1.56 | 8.91% |
| 2012 | 1.71 | 9.47% |
| 2013 | 1.88 | 10.01% |
| 2014 | 2 | 6.66% |
| 2015 | 2.1 | 4.907% |
| 2016 | 2.2 | 4.95% |
| 2017 | 2.28 | 3.33% |
| 2018 | 2.37 | 3.94% |
| 2019 | 2.46 | 3.73% |
| 2020 | 2.62 | 6.62% |
| 2021 | 2.75 | 5.13% |
| 2022 | 2.92 | 6.08% |
Conversion of 2006 rupees to today's price
Based on the 233.52% change in prices, the following 2006 amounts are shown in today's rupees:
| Initial value | Today value |
|---|---|
| ₹1 rupee in 2006 | ₹3.34 rupees today |
| ₹5 rupees in 2006 | ₹16.68 rupees today |
| ₹10 rupees in 2006 | ₹33.35 rupees today |
| ₹50 rupees in 2006 | ₹166.76 rupees today |
| ₹100 rupees in 2006 | ₹333.52 rupees today |
| ₹500 rupees in 2006 | ₹1667.61 rupees today |
| ₹1,000 rupees in 2006 | ₹3335.21 rupees today |
| ₹5,000 rupees in 2006 | ₹16676.07 rupees today |
| ₹10,000 rupees in 2006 | ₹33352.14 rupees today |
| ₹50,000 rupees in 2006 | ₹166760.68 rupees today |
| ₹100,000 rupees in 2006 | ₹333521.36 rupees today |
| ₹500,000 rupees in 2006 | ₹1667606.8 rupees today |
| ₹1,000,000 rupees in 2006 | ₹3335213.6 rupees today |
How to calculate the inflated value of ₹1 in 2006
To calculate the change in value between 2006 and today, we use the following inflation rate formula:
CPI Today / CPI in 2006 x Rupee Value in 2006 = Current Rupee Value
By plugging the values into the formula above, we get:
9248.3472/ 2772.94 x ₹1 = ₹3.34
To buy the same product that you could buy for ₹1 in 2006, you would need ₹3.34 in 2022.
To calculate the cumulative or total inflation rate in the past 16 years between 2006 and 2022, we use the following formula:
CPI in 2022 - CPI in 2006 / CPI in 2006 x 100 = Cumulative Inflation Rate
By inserting the values to this equation, we get:
( 9248.3472 - 2772.94 / 2772.94) x 100 = 233.52%
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 16 years between 2022 and 2006. The average inflation rate was 7.8189823236798%.
Plugging in the values into the formula, we get:
1 (1+ % 7.82/ 100 ) ^ 16 = ₹3.34