One can measure inflation using CPI or consumer Price Index. However, the same will calculation might take time if done manually. The inflation calculator gives results within seconds and saves time for the investor.
The inflation calculator uses historical rates to calculate the same. It also provides the worth of the same money if invested. The calculator gives the worth of money in the future.
CURRENCY TIME CALCULATOR FREE
The calculator is available online and is free to use multiple times. All one has to do is enter the amount of money to calculate the purchasing power of the same in the future. The inflation calculator is available online, and it’s easy to use. It also shows what will be the worth of the same amount of money if invested.īelow are the benefits of using the inflation calculator in India Easy to use Benefits of Inflation Calculator in IndiaĪn inflation calculator shows what will be the worth of a quantity of money after a certain period of time. Also, it is essential to ensure that the money saved today it’s worth something more and not less. Therefore, one should always be careful while investing. Long term investments have the potential to earn inflation beating returns. The plan suggests a portfolio that will help in building up a retirement fund. Scripbox’s Retire Confident plan will help in planning for a hassle-free retirement. Here the inflation calculator estimates the future inflation (expected inflation) rate.Īlso, had Ms Harini invested the same amount for 30 years, the value of her investment by 2050 would be INR 1,22,453 at an expected rate of return of 11.25%.Īssuming in 30 years, Ms Harini wants to retire. However the price of the same product in 2050 is INR 50,775. The cost of a product is INR 5,000 in 2020. Ms Harini wishes to check the value of her spending power as of 2020 in 2050. Let us understand the inflation calculator with the help of an example. Scripbox’s online inflation calculator will help in determining the worth of your spending power. Purchasing power is when the same amount of money will buy less of a product as time passes. This is called the falling purchasing power of the currency. With the same INR 25, one can get only half a litre of milk in 2020. Now the same litre of toned milk costs INR 45 in 2020. A litre of toned milk used to cost INR 25 in the year 2010. Inflation can be better explained with an example. It calculates the price change of all these 299 goods and services by taking a weighted average value of each of them. CPI is determined using a basket of 299 commodities. The percentage change in CPI over a period of time is the inflation over that period for consumer goods. In India, the Consumer Price Index (CPI) replaced the Wholesale Price Index (WPI) in the year 2013 as a measure of inflation.
While CPI measures retail level price changes (retail inflation).ĬPI is one of the most widely used indicators for identifying inflation or deflation in an economy. WPI measures wholesale level price changes. The measures of inflation are the Consumer Price Index (CPI) and Wholesale Price Index (WPI). Also, it shows the fall in the purchasing power of a rupee. In simple terms, it is a rise in price levels of goods and services of daily use. Inflation is a measure of the rate of change in prices of selected goods and services.
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