# Inflation calculation ?



## Acctran (18 Mar 2009)

I have obtained the inflation rates from the finfacts website from 2004 to 2008 but can anyone tell me how do I apply these rates to the answer to the following question :

What would €50 be in line with inflation as per the consumer price index ?  i.e what is its equivalent ?

I need to calculate what €50.00 would be on the 31/12/04 ; 31/12/05; 31/12/06; 31/12/07 ; 31/12/08.


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## orka (21 Mar 2009)

Are you asking what €50 now would be worth back then or what would €50 back then be worth now?  
Not sure what numbers you've got but if, for example, the index was 108.3 in 2004 and 122.3 for 2008, then €50 in 2004 inflated to 2008 would be 50 * 122.3 / 108.3 = 56.46.  You reverse the numbers if you want to deflate €50 in 2008 back to 2004 so 50 * 108.3 / 122.3 = 44.28


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## Acctran (23 Mar 2009)

What €50 back then would  be worth now is what I was looking so thanks for that.


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## Square Mile (23 Mar 2009)

Hello

Assuming a constant inflation rate of 5% and an initial value of € 50 in 2003 then 

€50 *1.05 (2004 value) * 1.05 (2005 value) * 1.05 (2006 value) * 1.05 (2007 value) * 1.05 (2008 value) * 1.05 (2009 value).  

€50 in 2003 with a constant rate of inflation of 5% would be worth €67 today.

Change the relevant inflation rate for each year according to FINFACTS.

SM


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