# Inflation calculator - Euro (Italy)

€51 in 2007

€59.44 in 2018

The inflation rate in Italy between 2007 and 2018 was 16.54%, which translates into a total increase of €8.44. This means that 51 euro in 2007 are equivalent to 59.44 euro in 2018. In other words, the purchasing power of €51 in 2007 equals €59.44 in 2018. The average annual inflation rate between these periods was 1.4%.

## Inflation timeline in Italy (2007 - 2018)

The following chart depicts the equivalence of €51 throughout the years due to inflation and CPI changes. All values are equivalent in terms of purchasing power, which means that for each year the same goods or services could be bought with the indicated amount of money.

All calculations are performed in the local currency (EUR) and using 6 decimal digits. Results show only up to 2 decimal digits to favour readability.

The following table contains relevant indicators:

Indicator Value
Total Inflation (2007-2018) 16.54%
Annual inflation avg. (2007-2018) 1.4%
CPI 2007 86.84
CPI 2018 101.2
€1 in 2007 €1.17 in 2018

## How to calculate the time value of money with inflation data?

There are several ways to calculate the time value of money. Depending on the data available, results can be obtained by using the compound interest formula or the Consumer Price Index (CPI) formula.

#### Using the compound interest formula

Given that money changes with time as a result of an inflation rate that acts as a compound interest, the following formula can be used: FV = PV (1 + i)n, where:

• FV: Future Value
• PV: Present Value
• i: Interest rate (inflation)
• n: Number of times the interest is compounded (i.e. # of years)

In this case, the future value represents the final amount obtained after applying the inflation rate to our initial value. In other words, the future value is the amount in 2018 that equals €51 in 2007 in terms of purchasing power. There are 11 years between 2007 and 2018 and the average inflation rate was 1.4014%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = €51 * (1 + 0.014014)11 = €59.436856 ≈ €59.44

#### Using the CPI formula

When the CPI for both start and end years is known, the following formula can be used:

Final value = Initial value *
CPI final/CPI initial

In this case, the CPI in 2007 was 86.84 and in 2018 was 101.2. Therefore,

Final value = Initial value *
CPI final/CPI initial
= €51 *
101.2/86.84
= €59.44

### Italy inflation - Conversion table

Initial Value Equivalent value
€1 euro in 2007 €1.17 euro in 2018
€5 euro in 2007 €5.83 euro in 2018
€10 euro in 2007 €11.65 euro in 2018
€50 euro in 2007 €58.27 euro in 2018
€100 euro in 2007 €116.54 euro in 2018
€500 euro in 2007 €582.71 euro in 2018
€1,000 euro in 2007 €1,165.43 euro in 2018
€5,000 euro in 2007 €5,827.14 euro in 2018
€10,000 euro in 2007 €11,654.29 euro in 2018
€50,000 euro in 2007 €58,271.43 euro in 2018
€100,000 euro in 2007 €116,542.86 euro in 2018
€500,000 euro in 2007 €582,714.28 euro in 2018
€1,000,000 euro in 2007 €1,165,428.55 euro in 2018

Period Value
2007 51
2008 52.33
2009 53.5
2010 54.05
2011 55.06
2012 56.87
2013 58.19
2014 58.57
2015 58.57
2016 58.62
2017 58.91
2018 59.44