Professional Documents
Culture Documents
Amount saved in the year 2000 was Rs. 100.00 (saved amount)
Value of amount in the year 2007 will be Rs. 135.71 (buying power)
Note:
- In formula value of $C$ (Row Number) need to be increased every year.
- Sheet (Inflation Rate) is related to Sheet (Inflation Calculator).
Inflation TIP!
- Sitting with pen and paper to do this exercise yourself may not give you an exact figure, but it will
pin down items that have increased drastically and are hurting your budget.
- REGULAR EXPENSES
~ Start with a list of the regular monthly expenses.
> These would include vegetables, fruits, milk, food items and other items, which make the cons
> Then, there are regular expenses such as, newspapers, electricity, telephone bills, daily conve
> Also, for a family with small children, there will be additional expenses on stationery, books, t
bought at regular intervals.
> There are other expenditures on eating out and entertainment activities. All these numbers, ta
monthly expenses.
> Once you have a fix on these numbers, keep on monitoring them every month, or at least, qu
of the expenses you should cut down, if required.
- ANNUAL EXPENSES
~ Every year, there would be certain expenses that would be a part of your regular outflow. In man
items in their calculations, but it's important to remember that they constitute a very important
> For instance, the tuition fees paid to the school or college or private teachers might be paid on
of education is rising constantly, it also becomes a part of your inflation.
> This annual number will vary from family to family, depending on their standard of living. For i
management degree at the Indian Institute of Management-Ahmedabad (IIM-A) will find that h
Other expenses that may vary include books, school and uniform.
> Then, there are various festivals, where there would be purchases such as clothes and gold. Ye
completely, but depending on your previous year's experiences, you will be able to put some nu
- A point to note is that you will need to break the yearly expenses to expenses per month. Only the
per month. Now with these two sets of numbers, you can start doing the calculations.
- Now that there is an expense list, you can create A made-for-you index. While the Wholesale Price
different kinds of items to come to a consolidated figure, you need to simply track the month-wise
- However, though it's the simplest way, there could be some anomaly in it because in some months
shoot up for some time.
~ For instance, during the months of April and May, you might see the electricity bill shooting up b
give the impression that the charges have increased. But in June, when this figure falls, it balanc
- A better way would be to compare year-on-year, so that the seasonal imbalances are wiped out. th
the real rate of inflation that is impacting your household.
** End **
ion causes us to need more money in later years to be the same.
uch money will you have to buy In the future?
(saved amount)
(buying power)
ther items, which make the consumption part of the household budget.
city, telephone bills, daily conveyance and salaries of maids and drivers.
expenses on stationery, books, toys and other material that have to be
ses such as clothes and gold. Yes, it is a bit difficult to budget for them
, you will be able to put some numbers to them.
o expenses per month. Only then you will arrive at the actual expenditure
g the calculations.
ndex. While the Wholesale Price Index (WPI) gives weights to all the
to simply track the month-wise rise in prices.
the electricity bill shooting up because of an extra levy in force. This might
, when this figure falls, it balances out the sudden rise.
nal imbalances are wiped out. the change in the expense, overall, will give
Year Cost Inflation
Index
1981 100.00 Note
1982 109.00 - Cost Inflation Index values can be obtained from the Current Year Income-Ta
1983 116.00
1984 125.00 What is BASE Rate?
1985 133.00 - Base Rate changes every 10 ten years.
1986 140.00 - To calculate money value inclusive of Inflation effect has be considered from t
1987 150.00 - Note, for calculating salary inclusive of Inflation effect - here Inflation percent
1988 161.00 - Visit http://labourbureau.nic.in/indexes.htm to view Consumer-Price-Index (C
1989 172.00
1990 182.00
1991 199.00
1992 223.00
1993 244.00
1994 259.00
1995 281.00
1996 305.00
1997 331.00
1998 351.00
1999 389.00
2000 406.00
2001 426.00
2002 447.00
2003 463.00
2004 480.00
2005 497.00
2006 519.00
2007 551.00
2008 582.00
2009
m the Current Year Income-Tax (Ready Reckoner)
Percentage Calculator