Price increase
Shows how much more you would need in the future to buy what you buy hoy.
Finance
See how much you would need to buy the same thing in the future and how much purchasing power a sum of money would retain.
Explore a scenario
These rates are illustrative, not forecasts. Use them to see how the result changes.
See how prices accumulate and the purchasing power of an unchanged amount decreases.
Price increases and purchasing-power loss are related, but they are not the same percentage.
Shows how much more you would need in the future to buy what you buy hoy.
Shows what percentage of buying power an amount that does not grow would retain.
Shows how much less that amount would buy at future prices.
Inflation factor = (1 + annual rate)years. To estimate the future cost, multiply the current price by that factor. To express a future amount in today's money, divide it by the same factor.
Each annual increase applies to prices that have already risen. That is why a small difference in the rate can produce very different results over long terms.
No. You enter the rate manually to explore scenarios. It does not retrieve official data or predict future inflation.
Multiply the current price by the cumulative inflation factor: one plus the annual rate raised to the number of years.
It is the amount of goods and services a sum of money can buy. When prices rise and the amount stays the same, its purchasing power falls.
They use different bases. If prices double, they rise 100%, but a fixed amount can buy only half as much and loses 50% of its purchasing power.
Use an average annual rate you want to explore and compare several scenarios. The appropriate rate depends on the country, term and type of expense.
Because inflation compounds. Over long terms, each year also affects increases accumulated in prior years.