You might be interested in calculating the value of ₹1 for the year 2020.
₹1 in 2019 is worth ₹1.21 today.
The value of ₹1 from 2019 to 2022
₹1 in 2019 has the purchasing power of about ₹1.21 today, a ₹0.21 increase in 3 years. Between 2019 and today, the rupee experienced an average annual inflation rate of 6.64%, resulting in a cumulative price increase of 21.26%.
According to the Bureau of Labor Statistics consumer price index, today's prices are several times higher than the average price since 2019.
In 2019, the inflation rate was 3.7295%. 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 2019 to 2022
Summary | Value |
---|---|
Cumulative price change (from 2019 to today) | 21.26% |
Average inflation rate (from 2019 to today) | 6.64% |
Converted amount | ₹1.21 |
Price Difference | ₹0.21 |
CPI in 2019 | 7627.1 |
CPI in 2022 | 9248.3472 |
Inflation in 2019 | 3.7295% |
Inflation in 2022 | 6.08% |
₹1 in 2019 | ₹1.21 in 2022 |
Buying power of ₹1 in 2019
If you had ₹1 in your hand in 2019, its adjusted value for inflation today would be ₹1.21. Put another way, you would need ₹1.21 to beat the rising inflation. When ₹1 becomes equivalent to ₹1.21 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 2019 rupees, it's evident how ₹1 loses its worth over 3 years.
Rupee inflation for ₹1 from 2019 to 2022
The below tabular column shows the effect of inflation on ₹1 in the year 2019 to the year 2019.
Year | Rupee Value | Inflation Rate |
---|---|---|
2019 | 1 | 3.7295% |
2020 | 1.07 | 6.62% |
2021 | 1.12 | 5.13% |
2022 | 1.19 | 6.08% |
Conversion of 2019 rupees to today's price
Based on the 21.26% change in prices, the following 2019 amounts are shown in today's rupees:
Initial value | Today value |
---|---|
₹1 rupee in 2019 | ₹1.21 rupees today |
₹5 rupees in 2019 | ₹6.06 rupees today |
₹10 rupees in 2019 | ₹12.13 rupees today |
₹50 rupees in 2019 | ₹60.63 rupees today |
₹100 rupees in 2019 | ₹121.26 rupees today |
₹500 rupees in 2019 | ₹606.28 rupees today |
₹1,000 rupees in 2019 | ₹1212.56 rupees today |
₹5,000 rupees in 2019 | ₹6062.82 rupees today |
₹10,000 rupees in 2019 | ₹12125.64 rupees today |
₹50,000 rupees in 2019 | ₹60628.2 rupees today |
₹100,000 rupees in 2019 | ₹121256.4 rupees today |
₹500,000 rupees in 2019 | ₹606282.02 rupees today |
₹1,000,000 rupees in 2019 | ₹1212564.04 rupees today |
How to calculate the inflated value of ₹1 in 2019
To calculate the change in value between 2019 and today, we use the following inflation rate formula:
CPI Today / CPI in 2019 x Rupee Value in 2019 = Current Rupee Value
By plugging the values into the formula above, we get:
9248.3472/ 7627.1 x ₹1 = ₹1.21
To buy the same product that you could buy for ₹1 in 2019, you would need ₹1.21 in 2022.
To calculate the cumulative or total inflation rate in the past 3 years between 2019 and 2022, we use the following formula:
CPI in 2022 - CPI in 2019 / CPI in 2019 x 100 = Cumulative Inflation Rate
By inserting the values to this equation, we get:
( 9248.3472 - 7627.1 / 7627.1) x 100 = 21.26%
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 3 years between 2022 and 2019. The average inflation rate was 6.6354391196497%.
Plugging in the values into the formula, we get:
1 (1+ % 6.64/ 100 ) ^ 3 = ₹1.21