Inflation formula maths

Adjusting for inflation in Excel is simpler than you might think. By using a few straightforward formulas, you can accurately account for the changing value of money over time. This involves using the Consumer Price Index (CPI) to adjust historical financial data to present-day values.

How to Adjust for Inflation in Excel

This section will guide you through the steps to adjust for inflation using Excel.

By the end, you’ll be able to convert past dollar amounts into present values, giving you a clearer picture of economic changes over time.

Step 1: Gather CPI Data

First, find historical CPI data for the time periods you are interested in.

You can usually get this information from government websites or financial databases.

How to calculate cumulative inflation over multiple years

Download or copy this data into an Excel spreadsheet.

Step 2: Enter CPI Data in Excel

Next, enter the CPI data into your Excel spreadsheet.

Make sure to label each column with the appropriate year and corresponding CPI value.

This will make it easier to reference these values in your formulas later.

Step 3: Prepare Your Data

Identify the dollar amount

how to adjust for inflation using cpi excel

how to calculate inflation in excel