You might be interested in calculating the value of ₹1 for the year 2017.
₹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
|Cumulative price change (from 2016 to today)||41.68%|
|Average inflation rate (from 2016 to today)||5.98%|
|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|
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
- 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