You might be interested in calculating the value of ₹1 for the year 2013. Or calculate the value of ₹1 for the year 2018
.₹1 in 2008 is worth ₹2.86 today.
The value of ₹1 from 2008 to 2022
₹1 in 2008 has the purchasing power of about ₹2.86 today, a ₹1.86 increase in 14 years. Between 2008 and today, the rupee experienced an average annual inflation rate of 7.79%, resulting in a cumulative price increase of 185.68%.
According to the Bureau of Labor Statistics consumer price index, today's prices are several times higher than the average price since 2008.
In 2008, the inflation rate was 8.3493%. 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 2008 to 2022
| Summary | Value |
|---|---|
| Cumulative price change (from 2008 to today) | 185.68% |
| Average inflation rate (from 2008 to today) | 7.79% |
| Converted amount | ₹2.86 |
| Price Difference | ₹1.86 |
| CPI in 2008 | 3237.29 |
| CPI in 2022 | 9248.3472 |
| Inflation in 2008 | 8.3493% |
| Inflation in 2022 | 6.08% |
| ₹1 in 2008 | ₹2.86 in 2022 |
Buying power of ₹1 in 2008
If you had ₹1 in your hand in 2008, its adjusted value for inflation today would be ₹2.86. Put another way, you would need ₹2.86 to beat the rising inflation. When ₹1 becomes equivalent to ₹2.86 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 2008 rupees, it's evident how ₹1 loses its worth over 14 years.
Rupee inflation for ₹1 from 2008 to 2022
The below tabular column shows the effect of inflation on ₹1 in the year 2008 to the year 2008.
| Year | Rupee Value | Inflation Rate |
|---|---|---|
| 2008 | 1 | 8.3493% |
| 2009 | 1.11 | -0.36% |
| 2010 | 1.24 | 1.64% |
| 2011 | 1.35 | 8.91% |
| 2012 | 1.48 | 9.47% |
| 2013 | 1.63 | 10.01% |
| 2014 | 1.74 | 6.66% |
| 2015 | 1.82 | 4.907% |
| 2016 | 1.91 | 4.95% |
| 2017 | 1.98 | 3.33% |
| 2018 | 2.05 | 3.94% |
| 2019 | 2.13 | 3.73% |
| 2020 | 2.27 | 6.62% |
| 2021 | 2.39 | 5.13% |
| 2022 | 2.53 | 6.08% |
Conversion of 2008 rupees to today's price
Based on the 185.68% change in prices, the following 2008 amounts are shown in today's rupees:
| Initial value | Today value |
|---|---|
| ₹1 rupee in 2008 | ₹2.86 rupees today |
| ₹5 rupees in 2008 | ₹14.28 rupees today |
| ₹10 rupees in 2008 | ₹28.57 rupees today |
| ₹50 rupees in 2008 | ₹142.84 rupees today |
| ₹100 rupees in 2008 | ₹285.68 rupees today |
| ₹500 rupees in 2008 | ₹1428.41 rupees today |
| ₹1,000 rupees in 2008 | ₹2856.82 rupees today |
| ₹5,000 rupees in 2008 | ₹14284.09 rupees today |
| ₹10,000 rupees in 2008 | ₹28568.18 rupees today |
| ₹50,000 rupees in 2008 | ₹142840.88 rupees today |
| ₹100,000 rupees in 2008 | ₹285681.76 rupees today |
| ₹500,000 rupees in 2008 | ₹1428408.82 rupees today |
| ₹1,000,000 rupees in 2008 | ₹2856817.65 rupees today |
How to calculate the inflated value of ₹1 in 2008
To calculate the change in value between 2008 and today, we use the following inflation rate formula:
CPI Today / CPI in 2008 x Rupee Value in 2008 = Current Rupee Value
By plugging the values into the formula above, we get:
9248.3472/ 3237.29 x ₹1 = ₹2.86
To buy the same product that you could buy for ₹1 in 2008, you would need ₹2.86 in 2022.
To calculate the cumulative or total inflation rate in the past 14 years between 2008 and 2022, we use the following formula:
CPI in 2022 - CPI in 2008 / CPI in 2008 x 100 = Cumulative Inflation Rate
By inserting the values to this equation, we get:
( 9248.3472 - 3237.29 / 3237.29) x 100 = 185.68%
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 14 years between 2022 and 2008. The average inflation rate was 7.7861692202864%.
Plugging in the values into the formula, we get:
1 (1+ % 7.79/ 100 ) ^ 14 = ₹2.86