€1,000 in 1998
€1,406.28 in 2018
The inflation rate in the eurozone between 1998 and 2018 was 40.63%, which translates into a total increase of €406.28. This means that 1,000 euro in 1998 are equivalent to 1,406.28 euro in 2018. In other words, the purchasing power of €1,000 in 1998 equals €1,406.28 in 2018. The average annual inflation rate between these periods was 1.72%.
The following chart depicts the equivalence of €1,000 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 (1998-2018) | 40.63% |
| Annual inflation avg. (1998-2018) | 1.72% |
| CPI 1998 | 72.88 |
| CPI 2018 | 102.49 |
| €1 in 1998 | €1.41 in 2018 |
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.
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:
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 €1,000 in 1998 in terms of purchasing power. There are 20 years between 1998 and 2018 and the average inflation rate was 1.7194%. Therefore, we can resolve the formula like this:
FV = PV (1 + i)n = €1000 * (1 + 0.017194)20 = €1,406.284303 ≈ €1,406.28
When the CPI for both start and end years is known, the following formula can be used:
In this case, the CPI in 1998 was 72.88 and in 2018 was 102.49. Therefore,
| Initial Value | Equivalent value | |
|---|---|---|
| €1 euro in 1998 | €1.41 euro in 2018 | |
| €5 euro in 1998 | €7.03 euro in 2018 | |
| €10 euro in 1998 | €14.06 euro in 2018 | |
| €50 euro in 1998 | €70.31 euro in 2018 | |
| €100 euro in 1998 | €140.63 euro in 2018 | |
| €500 euro in 1998 | €703.14 euro in 2018 | |
| €1,000 euro in 1998 | €1,406.28 euro in 2018 | |
| €5,000 euro in 1998 | €7,031.42 euro in 2018 | |
| €10,000 euro in 1998 | €14,062.84 euro in 2018 | |
| €50,000 euro in 1998 | €70,314.22 euro in 2018 | |
| €100,000 euro in 1998 | €140,628.43 euro in 2018 | |
| €500,000 euro in 1998 | €703,142.15 euro in 2018 | |
| €1,000,000 euro in 1998 | €1,406,284.3 euro in 2018 |
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