₹1 in 2016 is worth ₹1.42 today.

The value of ₹1 from 2016 to 2022

₹1 in 2016 has the purchasing power of about ₹1.42 today, a ₹0.42 increase in 6 years. Between 2016 and today, the rupee experienced an average annual inflation rate of 5.98%, resulting in a cumulative price increase of 41.68%.

According to the Bureau of Labor Statistics consumer price index, today's prices are several times higher than the average price since 2016.

In 2016, the inflation rate was 4.9482%. 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 2016 to 2022

Summary	Value
Cumulative price change (from 2016 to today)	41.68%
Average inflation rate (from 2016 to today)	5.98%
Converted amount	₹1.42
Price Difference	₹0.42
CPI in 2016	6527.69
CPI in 2022	9248.3472
Inflation in 2016	4.9482%
Inflation in 2022	6.08%
₹1 in 2016	₹1.42 in 2022

Buying power of ₹1 in 2016

If you had ₹1 in your hand in 2016, its adjusted value for inflation today would be ₹1.42. Put another way, you would need ₹1.42 to beat the rising inflation. When ₹1 becomes equivalent to ₹1.42 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 2016 rupees, it's evident how ₹1 loses its worth over 6 years.

Rupee inflation for ₹1 from 2016 to 2022

The below tabular column shows the effect of inflation on ₹1 in the year 2016 to the year 2016.

Year	Rupee Value	Inflation Rate
2016	1	4.9482%
2017	1.03	3.33%
2018	1.07	3.94%
2019	1.11	3.73%
2020	1.19	6.62%
2021	1.25	5.13%
2022	1.32	6.08%

Conversion of 2016 rupees to today's price

Based on the 41.68% change in prices, the following 2016 amounts are shown in today's rupees:

Initial value	Today value
₹1 rupee in 2016	₹1.42 rupees today
₹5 rupees in 2016	₹7.08 rupees today
₹10 rupees in 2016	₹14.17 rupees today
₹50 rupees in 2016	₹70.84 rupees today
₹100 rupees in 2016	₹141.68 rupees today
₹500 rupees in 2016	₹708.39 rupees today
₹1,000 rupees in 2016	₹1416.79 rupees today
₹5,000 rupees in 2016	₹7083.94 rupees today
₹10,000 rupees in 2016	₹14167.87 rupees today
₹50,000 rupees in 2016	₹70839.36 rupees today
₹100,000 rupees in 2016	₹141678.71 rupees today
₹500,000 rupees in 2016	₹708393.57 rupees today
₹1,000,000 rupees in 2016	₹1416787.13 rupees today

How to calculate the inflated value of ₹1 in 2016

To calculate the change in value between 2016 and today, we use the following inflation rate formula:

CPI Today / CPI in 2016 x Rupee Value in 2016 = Current Rupee Value

By plugging the values into the formula above, we get:

9248.3472/ 6527.69 x ₹1 = ₹1.42

To buy the same product that you could buy for ₹1 in 2016, you would need ₹1.42 in 2022.

To calculate the cumulative or total inflation rate in the past 6 years between 2016 and 2022, we use the following formula:

CPI in 2022 - CPI in 2016 / CPI in 2016 x 100 = Cumulative Inflation Rate

By inserting the values to this equation, we get:

( 9248.3472 - 6527.69 / 6527.69) x 100 = 41.68%

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 6 years between 2022 and 2016. The average inflation rate was 5.978418423327%.

Plugging in the values into the formula, we get:

1 (1+ % 5.98/ 100 ) ^ 6 = ₹1.42