Calculate the value of dollars over time. This US dollar inflation calculator can count inflation rates over past years and compare them to the value of dollars today. Count your salary inflation, price inflation or predict future inflation based on the inflation data collected from past years.
Inflation rate is the percentage difference between the historical price and the current price.
Governments strive for a 2% to 3% inflation rate. Low inflation rates are good for the economy because they incentivize consumer behaviour, enabling people to buy more goods and services at low prices.
In order to measure this percentage change, a representative collection of prices, most commonly the CPI (consumer price index) is used as a reference point. The CPI is a measure of the prices of the goods and services that consumers buy each month in a given historical and current period.
Borrowers: Your bank loans, mortgages and debt will decrease in value over time.
Savers: As the prices go up and the value of your savings goes down, you will be able to buy less.
Consumers: The same amount of money will get you less over time with high inflation.
Having a savings account with 4% interest might make you feel 4% richer, but if the inflation rate is 7%, you’re actually getting 3% poorer. Turn your savings account into an investment portfolio with interest rates going up to 19%.
Even a low-interest savings account is better than getting no interest on your savings by piling cash in your house. Yes, there are banking fees you would avoid, but you would also get no interest rate on your savings.
Taking a 30-year long mortgage is a scary commitment, but it spares you from paying rent, which is money you will never get back. Whatever amount you borrow will be worth significantly less in 30 years, plus your income will have increased.
Unlike any currency, property is not subject to inflation. Vehicles depreciate over time, but property and land grow in value over time. Just ask your parents how much they bought their house for. Besides being a bare necessity, property is objectively the best investment you can make, likely doubling in value in a few years.
Your professional skillset, physical and mental health and social networking needs to be covered before anything else. You are your only way of generating income and if you’re not able to, inflation won’t be your only problem. Pay your health insurance, take courses, go to networking events.More about how to live with inflation.
The highest inflation rate in the world was for the Zimbabwean dollar and it was caused by the government printing more money to avoid hyperinflation, pay national debt and fight a decline in economic output and export earnings. Learn more.
In November 2008, Zimbawe's daily inflation rate was 98%, which basically means prices would double everyday.
Countries can also have a negative inflation rate. Eritrea's inflation rate between 2018 and 2019 was -27.6%. Learn more.
Countries with the lowest inflation rates
Increasing interest rates reduces demand, which leads to lower economic growth and lower inflation. Get more info.
Addresses growing demand & buying power
Monetarists claim printing more money will reduce its value if not controlled, therefore it’s closely monitored. Get more info.
Controls currency amount in circulation
Making the company more competitive and efficient will reduce long-term costs and tackle inflation. Get more info.
Addresses uncompetitiveness & rising costs
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