How to adjust for inflation using cpi?

To adjust for inflation using the Consumer Price Index (CPI), you can use the following formula: (CPI in current year / CPI in base year) x original cost. This will give you the cost of the item or service in today’s dollars, adjusted for inflation. For example, if the CPI in the base year is 100 and the CPI in the current year is 130, and the original cost of an item is $100, the adjusted cost would be $130.

The effects of inflation are often not directly felt but are played out over a long time, especially long-term investments are vulnerable to inflation.


At Horizon65, we created a mobile app that enabled you to check the effect of inflation on your savings.

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