Last time, I've created an inflation calculator that lets you estimate how much loss of value your money will have given an inflation rate percentage.
However, getting the current inflation rate based on the Consumer Price Index (CPI) is a complicated process. If you want to get a quick inflation rate estimate, you can do the following:
- Get the old price of a basic item last year (it can be several years back, if you still remember the price)
- Get the current price of the same item this year
- Count how many years have passed.
Example
- The price of a Mackarel Scad (Galunggong) in 2016 was 100/kg
- The price of this particular fish reached 280/kg this year 2021
- The number of years passed is 5
Proxy Inflation Rate Calculator
| Instruction: Do not add a comma when inputting values. For example, you need to enter 10000 instead of 10,000 to calculate the values correctly. |
The above example will give 22.87% as its proxy inflation rate result. Meaning, in 5 years, your money lost 22.87% of its value. To have a clearer picture, you can input this result in this little tool: Inflation: Future Money Value Calculator.
Quote
"The first panacea for a mismanaged nation is inflation of the currency; the second is war. Both bring a temporary prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunists."
Ernest Hemingway
- Your Life In Perspective by ÆlfRæd (Elf Counsel)
