You might be interested in calculating the value of ₹1 for the year 2018.
₹1 in 2017 is worth ₹1.36 today.
The value of ₹1 from 2017 to 2022
₹1 in 2017 has the purchasing power of about ₹1.36 today, a ₹0.36 increase in 5 years. Between 2017 and today, the rupee experienced an average annual inflation rate of 6.38%, resulting in a cumulative price increase of 36.25%.
According to the Bureau of Labor Statistics consumer price index, today's prices are several times higher than the average price since 2017.
In 2017, the inflation rate was 3.3282%. 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 2017 to 2022
|Cumulative price change (from 2017 to today)||36.25%|
|Average inflation rate (from 2017 to today)||6.38%|
|CPI in 2017||6787.62|
|CPI in 2022||9248.3472|
|Inflation in 2017||3.3282%|
|Inflation in 2022||6.08%|
|₹1 in 2017||₹1.36 in 2022|
Buying power of ₹1 in 2017
If you had ₹1 in your hand in 2017, its adjusted value for inflation today would be ₹1.36. Put another way, you would need ₹1.36 to beat the rising inflation. When ₹1 becomes equivalent to ₹1.36 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 2017 rupees, it's evident how ₹1 loses its worth over 5 years.
Rupee inflation for ₹1 from 2017 to 2022
The below tabular column shows the effect of inflation on ₹1 in the year 2017 to the year 2017.
|Year||Rupee Value||Inflation Rate|
Conversion of 2017 rupees to today's price
Based on the 36.25% change in prices, the following 2017 amounts are shown in today's rupees:
|Initial value||Today value|
|₹1 rupee in 2017||₹1.36 rupees today|
|₹5 rupees in 2017||₹6.81 rupees today|
|₹10 rupees in 2017||₹13.63 rupees today|
|₹50 rupees in 2017||₹68.13 rupees today|
|₹100 rupees in 2017||₹136.25 rupees today|
|₹500 rupees in 2017||₹681.27 rupees today|
|₹1,000 rupees in 2017||₹1362.53 rupees today|
|₹5,000 rupees in 2017||₹6812.66 rupees today|
|₹10,000 rupees in 2017||₹13625.32 rupees today|
|₹50,000 rupees in 2017||₹68126.58 rupees today|
|₹100,000 rupees in 2017||₹136253.17 rupees today|
|₹500,000 rupees in 2017||₹681265.83 rupees today|
|₹1,000,000 rupees in 2017||₹1362531.67 rupees today|
How to calculate the inflated value of ₹1 in 2017
To calculate the change in value between 2017 and today, we use the following inflation rate formula:
CPI Today / CPI in 2017 x Rupee Value in 2017 = Current Rupee Value
By plugging the values into the formula above, we get:
9248.3472/ 6787.62 x ₹1 = ₹1.36
To buy the same product that you could buy for ₹1 in 2017, you would need ₹1.36 in 2022.
To calculate the cumulative or total inflation rate in the past 5 years between 2017 and 2022, we use the following formula:
CPI in 2022 - CPI in 2017 / CPI in 2017 x 100 = Cumulative Inflation Rate
By inserting the values to this equation, we get:
( 9248.3472 - 6787.62 / 6787.62) x 100 = 36.25%
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 5 years between 2022 and 2017. The average inflation rate was 6.382286624074%.
Plugging in the values into the formula, we get:
1 (1+ % 6.38/ 100 ) ^ 5 = ₹1.36