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Adjusting for inflation in Excel


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#1 naomi

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Posted 14 April 2008 - 07:16 PM

Is there a formula for that? Automatically puts it all into today's dollars?

"For the word of God is quick, and powerful, and sharper than any twoedged sword, piercing even to the dividing asunder of soul and spirit, and of the joints and marrow, and is a discerner of the thoughts and intents of the heart. Neither is there any creature that is not manifest in his sight: but all things are naked and opened unto the eyes of him with whom we have to do." Hebrews 4:12-13

 

 


#2 Strike

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Posted 14 April 2008 - 07:18 PM

= +5


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#3 Me_2006

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Posted 14 April 2008 - 07:19 PM

No idea how much this helps, as it's a lot of werds and I wasn't about to read them all, but it looks like it might include something that will at least give you a starting point. :ninja:



Link

#4 Me_2006

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Posted 14 April 2008 - 07:21 PM

Adjust Numbers for Inflation


The Consumer Price Index is often used to adjust data for inflation. For example, say you had a monthly salary in 1991 of $5000. What was the equivalent salary in 2001? The CPI in 1991 was 136.2, and in 2001 it was 177.1. The ratio of these two numbers should match the ratio of the salaries in order to keep the buying power the same. Thus, we need to find the salary x such that

.

Solve this equation for x to find the monthly salary in 2001 equivalent to $5000 in 1991.
Your answer should be somewhat more than $6500. If you earn less than that, you are not keeping up with inflation -- your income on paper may look like it has increased by, say, 25%, but you cannot buy the goods and services you bought before. You need an increase of about 30% to keep up with inflation for this period.

The same information about equivalent salaries can be calculated on the Web site of the Bureau of Labor Statistics. Go to Inflation & Consumer Spending and Inflation Calculator.




There ya go. There's a chart in the link I sent you that has it for each of the years. So I suppose you can plug in that formula and it should work. :ninja:

#5 naomi

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Posted 14 April 2008 - 07:32 PM

Hmmm, might be able to use that. Looks like I'll need to find the values for 99-08/09 since it's the span I have to compare with for each individual year. Was thinking there would be one formula that skips over needing to know the ratios, but I don't know if Excel is that sophisticated.

thanks :ninja:

"For the word of God is quick, and powerful, and sharper than any twoedged sword, piercing even to the dividing asunder of soul and spirit, and of the joints and marrow, and is a discerner of the thoughts and intents of the heart. Neither is there any creature that is not manifest in his sight: but all things are naked and opened unto the eyes of him with whom we have to do." Hebrews 4:12-13

 

 


#6 Me_2006

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Posted 14 April 2008 - 07:36 PM

Hmmm, might be able to use that. Looks like I'll need to find the values for 99-08/09 since it's the span I have to compare with for each individual year. Was thinking there would be one formula that skips over needing to know the ratios, but I don't know if Excel is that sophisticated.

thanks :ninja:

Oh there probably is, I just wasn't about to read through all that math garbage to find out :doh:

#7 naomi

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Posted 14 April 2008 - 07:41 PM

Oh there probably is, I just wasn't about to read through all that math garbage to find out :P

Not finding it through googling. My prof. gave my class a simple one for population-inflation adjusting. Now I just need to change a chart that's basically showing how much a department was funded through the 99-08/09 budget years.

Really hoping the ratio thing isn't the route that needs taking :doh:

I'll keep searching though. I was thinking maybe someone who uses Excel all the time would know off the top of their head.

"For the word of God is quick, and powerful, and sharper than any twoedged sword, piercing even to the dividing asunder of soul and spirit, and of the joints and marrow, and is a discerner of the thoughts and intents of the heart. Neither is there any creature that is not manifest in his sight: but all things are naked and opened unto the eyes of him with whom we have to do." Hebrews 4:12-13

 

 


#8 IndyTom

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Posted 14 April 2008 - 08:55 PM

http://mathdl.maa.or...t...Id=506&pf=1

:headbanger:
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#9 Me_2006

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Posted 14 April 2008 - 09:01 PM

http://mathdl.maa.or...t...Id=506&pf=1

:headbanger:

Check my link, copycat. <_<



:banana:

#10 IndyTom

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Posted 14 April 2008 - 09:02 PM

Check my link, copycat. <_<
:banana:


what link? :headbanger:

ETA: crap :wall:
I don't want to sell anything, buy anything, or process anything as a career. I don't want to sell anything bought or processed, or buy anything sold or processed, or process anything sold, bought, or processed, or repair anything sold, bought, or processed. You know, as a career, I don't want to do that.

#11 Me_2006

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Posted 14 April 2008 - 09:05 PM

what link? :headbanger:

ETA: crap :banana:

Great minds. <_<

#12 Let Da Big Dog Eat

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Posted 14 April 2008 - 11:45 PM

Why not just write your own? This is not a difficult question. Use your own inflation adjustment yr/yr. :headbanger:
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#13 naomi

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Posted 15 April 2008 - 12:01 AM

Why not just write your own? This is not a difficult question. Use your own inflation adjustment yr/yr. :rolleyes:

Not sure if you mean IN excel or just do the figuring. It's the state and federal funding for a government department over a 10 year period. The data was sent in Excel, so using the same spreadsheet to just automatically adjust all the figures to today's dollars would save a lot of time. 60 cells need adjusting...mass applying the calculation would be :headbanger:

"For the word of God is quick, and powerful, and sharper than any twoedged sword, piercing even to the dividing asunder of soul and spirit, and of the joints and marrow, and is a discerner of the thoughts and intents of the heart. Neither is there any creature that is not manifest in his sight: but all things are naked and opened unto the eyes of him with whom we have to do." Hebrews 4:12-13

 

 


#14 Quickolas1

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Posted 15 April 2008 - 12:27 AM

future $ / ((1+i)^y)

i = inflation
y = years

or opposite
$10,000 in 13 years @ 3% inflation = 10000*1.03^13 = $14,685.34

#15 Ray Lewis's Limo Driver

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Posted 15 April 2008 - 10:52 AM

Unless you include food and energy in the analysis the results are not valid, your measure will always be too low.

That is how the government has hidden true inflation from us for 25 years.

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