 # Money Inflation Calculator + Online Solver With Free Steps

The Money Inflation Calculator determines the current price of a product and the average inflation rate relative to a given base price and period. ## What Is the Money Inflation Calculator?

The Money Inflation Calculator is an online tool that calculates the average inflation rate and the current price of a product that cost a known amount during some earlier period.

The earlier time period is called the base period, and the price during it is called the base price. The current-year price is called the updated/current price

Inflation is inherently between two different time instances. In this calculator, one of the time instances is the current day, and inflation is measured w.r.t. some earlier year (base period). You need to enter the base period and the base price.

For example, the price of bread today (2022) is not the same as in 1900. So 1900 is our base period, and 2022 is the current year. Inflation occurs in between.

The calculator interface consists of two descriptively labeled text boxes. The labels are self-explanatory. In the first (top) text box, you enter the price of a specific product in the base period (the base price), and in the second (bottom) box, you enter the year corresponding to that price (the base period).

In summary, the calculator takes information about the earlier year (base period) to calculate the updated price of that product in the current day.

## How To Use the Money Inflation Calculator

You can use the Money Inflation Calculator to find the current price of a product if you know the price from an earlier year. For example, if a digital piano cost 500 USD in 2015, you can get its current price from the calculator. Follow the step-by-step guidelines below for help.

### Solution

Let us consider what we have:

base price (ream of paper) = $3 base period (year) = 1900 current period (year) = 2022 CPI$_\boldsymbol{\textsf{current}}’$= 3307 And since the current year CPI is relative to the base CPI, we can assume CPI$_\boldsymbol{\textsf{base}}’$= 100. Now we can use equation (1) to get the current price: $\textsf{current price} = \mathsf{3} \textsf{ USD} \times \frac{\mathsf{3307}}{\mathsf{100}}$ current price = 99.21 USD =$99.21

The average rate of inflation can be found using equation (3). The number of years n = 2022 – 1900 = 122.

$\mathsf{i} = \sqrt[\mathsf{122}]{\frac{\mathsf{99.21} \textsf{ USD}}{\mathsf{3} \textsf{ USD}}}-\mathsf{1}$

i $\approx$ 1.0291 – 1 = 0.0291

i(%) $\boldsymbol{\approx}$ 2.91%