Inflation Calculator

Inflation Calculator

Inflation can be defined as the rise in cost of general goods and services over time. Inflation is usually represented by the inflation rate. It represents a percentage by which costs rise in an economy. This also means that a sum of money will buy less goods and services as inflation rises. Our inflation calculator will help you see how much an amount of money is worth after the inflation over a period of time.

Different economies may have a high or low inflation rate which can have positive and negative effects on the economy. We generally think of the negative effects of inflation meaning that our paycheck will not buy as many goods as it did the previous year. This is true, but it also helps fight against recession during a struggling economy.

A low inflation rate is preferred over a high inflation rate or no inflation. High inflation rates can cause uncertainty with businesses and consumers. This can lead to hoarding of certain goods or can cause businesses to halt growth due to the uncertainty. Low inflation rates give the central bank the ability to adjust the interest rates for loans during economic recession since interest rates are based somewhat on the rate of inflation. Economies that use a gold standard to back their currency usually experience very low inflation rates. Critics argue that the inflation rates are based on the mining of gold and not on the economic climate at the time.This is because high inflation rates are sometimes caused by an overflow of money into an economy with no standard to back it up.

For our inflation calculator simply select the time period you want to figure inflation for. Enter the amount of money to check and the calculator will show you the inflated amount. This will give you an idea of how much the costs of goods and services have risen over the years.

Inflation Calculator

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