Worth of ₹ in
Is same as in
About Inflation Calculator

This is an online tool to calculate India's inflation between the years 1971-2016 based on Consumer Price Index


A brief note on how we made Inflation Calculator India

The Idea:
When we googled for an India's Inflation Calculator, we could not find one for India with clear explanation on how the calculations are made. So, we embarked on the task of creating a reliable inflation Calculator that users can both understand and trust*.

Choosing the Index:
Any inflation calculator is based on an index, and India has quite a few indexes to choice from. Historically inflation is measured based on Wholesale Price India(WPI) in India. However, in April 2014 RBI announced that inflation will be measured based on new CPI(Consumer Price Index) started in 2010. In india the gap between rich and poor is wide, and has sections of society with contrasting standards of living. No single CPI can measure inflation for various income groups. Hence, India measures CPI separately for Industrial Workers(CPI-IW), Agricultural workers(AL) and Urban and Rural. For the purpose of this calculator, we have used Urban CPI as these are the section of people who are most likely to use this Calculator.

The Challenge:
Once we decided on the Index it should have been a cake walk to implement it! Once we started looking for CPI data the trouble started. We could not find a single CPI that goes back to 1970s. Every 5 to 10 years, RBI decides start a new Index base line . We could simply picked up the latest new CPI which started on 2010 and our life would have be much easier. However, it would have added little value to the users, would it not be interesting to know see the value of your high school pocket money in today's money!!

Solution:
We combined to the different RBI CPI indices of different period to make a single index which to scale up to the New CPI(Refer the table to the right of this page ). This combined index is used by the calculator to calculate inflation adjust amounts.

How is the inflation calculated?

The below example explains how the inflation is calculated by the Calculator .
 
Example:
We want to know how much goods worth ₹ 100 in 2013 cost in 2014 ? The calculations are explained below.

Average Consumer Price Index(CPI) in the year 2013 is 132.229 and

Average Consumer Price Index(CPI) in the year 2014 is 138.481
 
2014 equivalent of goods worth ₹ 100 in 2013
        = ( 2014 CPI / 2013 CPI ) * Amount
        = ( 138.481 / 132.229 ) * 100
        = ₹ 104.73

Inflation in India

The Highs:
Historically, India's inflation has been high averaging 8 % from 1971 to 2015, reaching an all time high of 22% in 1974 due to india pakistan war in 1971.

The Lows:
The years 1999 to 2007 is the only prolong period when the inflation stated below 6% as seen from the below chart.
Causes of high inflation in India

Population Growth
India's population has grown rapidly since independence, however food production and storage facilties have not kept up with the pace of population growth causing food inflation

Raising Wages
Raising wages in India gave many more people buying power to buy things that were not affordable earlier, the supply has not kept up with the new demand, the prices increase leading to inflation.

Weak Ruppee
Weak Ruppee has not helped the inflation making imports more expensive.


Inflation explained in laymans terms

Quiet simply, inflation is rise in prices of goods and services. If a basket of goods and services cost ₹ 100 in 2013, and the same goods and servies cost ₹ 104 in 2014. Then, we say inflation is 4%. Over time Inflation has a big impact on purchasing power of your money.


A short video on how to use Inflation Calculator India:



*Disclaimer:
This Calculator is not meant to calculate exact amounts, but aims to give a good estimate of of the Inflation. Though care is take to make it as accurate as possible, we cannot be held liable for any loss due to incorrect calculations.
Share this Calculator



Advertisements

Consumer Price Index and historic Inflation Rates

Year New CPI Inflation Rate
1970 4.77272 NA
1971 4.93729 4.45 %
1972 5.26645 6.67 %
1973 6.0619 15.10 %
1974 7.40594 22.17 %
1975 7.59795 2.59 %
1976 7.59795 0 %
1977 8.1191 6.86 %
1978 8.3934 3.38 %
1979 9.0517 7.84 %
1980 10.1215 11.82 %
1981 11.3283 11.92 %
1982 12.2335 7.99 %
1983 13.4953 10.31 %
1984 14.6688 8.70 %
1985 15.6956 7.00 %
1986 16.8691 7.48 %
1987 18.4827 9.57 %
1988 19.9495 7.94 %
1989 21.2697 6.62 %
1990 23.6167 11.03 %
1991 26.8438 13.66 %
1992 29.6309 10.38 %
1993 31.6845 6.93 %
1994 34.765 9.72 %
1995 37.9921 9.28 %
1996 41.5126 9.27 %
1997 44.2997 6.71 %
1998 49.4338 11.59 %
1999 51.6341 4.45 %
2000 54.4211 5.40 %
2001 57.2082 5.12 %
2002 59.4085 3.85 %
2003 61.6088 3.70 %
2004 63.9558 3.81 %
2005 66.8896 4.59 %
2006 71.2902 6.58 %
2007 75.5442 5.97 %
2008 82.2918 8.93 %
2009 93 13.01 %
2010 100 7.53 %
2011 109.474 9.47 %
2012 120.147 9.75 %
2013 132.229 10.06 %
2014 138.481 4.73 %
2015 146 5.43 %
2016 153 4.79 %
2017 155 1.96 %
Constituents of New Consumer Price Index

Cereal and Products
Pulses and Pulse Products
Oils and Fats Meat - Fish etc
Milk and Milk Products
Spices and Condiments
Vegetables
Fruits
Sugar - Honey etc
Non Alcoholic Beverages
Prepared Meals
Pan - Supari etc
Food - beverages and tobacco
Fuel and Lighting
Housing Clothing and Bedding
Footwear Clothing - bedding and footwear
Medical Care
Education Recreation and Amusement
Transport and Communication
Personal Care Items
Household Requisites

 
Copyright: CalculatorStack.com 2014. All rights reserved.          Privacy Policy  |  Terms and Conditions  |  Credits