How to factor inflation into any calculation
Let's say you got married in the year 2000 and had assets worth 10,000 euros. How much are these assets worth in 2020?
This calculator allows you to figure out the real price of your assets based on the official consumer price index (CPI) in Germany.
When calculating your
accrued gains
("Zugewinn"), you have to consider how inflation has affected the value of your assets.
The initials assets, brought into the marriage on the wedding day, change value over time according to the inflation rate. The price
increase is defined by the CPI difference between the starting and the ending date of the relevant period. The annual averages used
in the calculations on the site is based on the German CPI, surveyed and published since 1948 by the
German Federal Office of Statistics.
This inflation calculator
calculates the average inflation rate over an annual period and the price increase of your entered value.
Entering the first and last year sets the relevant time period. The final amount is calculated based on the entered starting amount
and the CPI in Germany. The price rise is defined as the percentage change in prices between the starting and ending date of the
relevant period. The
average inflation rater
is calculated based on the CPI at the beginning and at the end of the period. All amounts
can be indicated in both Euros (€) and Deutsche Mark (DM).
Notes on the inflation rate calculator
Consumer price index (CPI) for Germany:
The consumer price index (CPI) is a key indicator of price development. The percentage change in the CPI is referred to as an
inflation rate or price increase rate. A time period with a rising price index is called inflation, a falling price index deflation.
The CPI for Germany—long series from 1948—is published monthly as a table by the
Federal Statistical Office
This table contains various price indices for the period 1948 to 1991, and since 1991, a unified CPI and an index of retail prices. This table
of the Federal Statistical Office contains monthly and annual values for the various key figures. Only the current average annual
values of consumer price development are taken into account in this
inflation calculator.
If a year after 2017 is entered, the index is calculated using an interpolation of the last 5 years.
Calculating the consumer price index (CPI):
In the published table, the index is presented as a percentage value against a base year. For the years 1948 to 1990 the
consumer price index with base year 1995 (index = 100) is used. The CPI of 1948 to 1961 is taken from the column
"4-Personenhaushalt von Arbeitern und Angestellten" and from 1962 to 1990 the column "Alle privaten Haushalte." As of 1991, the CPI
is used as the basis for calculation with the base year 2010 (index = 100).
Calculating price increase:
In this inflation calculator
the final value of the assets is calculated based on the initial value of the assets and on the difference between the initial and
current index values. The percentage price increase is calculated as the difference between the amount at the beginning and at the
end relating to the amount at the beginning. That is, the sum of the amount at the beginning and the percentage price increase gives
the amount at the end.
Average inflation per year:
In this inflation calculator,
average inflation corresponds to the rate of inflation (rate of price increases) per year and indicates the percentage by which
the prices have risen on an average per year.
Historical price development in Germany:
The lowest inflation rate per year over the entire period considered was from 1949 to 1950 with a negative CPI of -1.4. This means
that Germany has experienced a deflation during this period, which had already begun in 1948 and ended in 1950. The maximum inflation
rate was from 1991 to 1992, shortly after the German reunification, with a CPI of 3.6.