How can I calculate if my salary has risen more than inflation?

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HorTs

Guru
Location
Portsmouth
I'm not a maths dunce but I just can't get my head around it.

In theory if I was on £18,000 in 2008 and it rose in line with inflation what would I be on now?

Any ideas?
 

cisamcgu

Legendary Member
Location
Merseyside-ish
Try this :-

http://www.thisismoney.co.uk/money/...tion-calculator-value-money-changed-1900.html

But I think the answer is £20,338.20

Total inflation since 2008 is 12.99%
 

threebikesmcginty

Corn Fed Hick...
Location
...on the slake
Interesting, I put though my paper round money from when I was 12 and it equates to £13.18 a week, Christ I used to get up at 5am to do that fugger, robbing old bastard newsagent, I'd go and punch him in the face if he hadn't had a heart attack and died years ago when he was out on his Honda step-though.
 

ASC1951

Guru
Location
Yorkshire
Interesting, I put though my paper round money from when I was 12 and it equates to £13.18 a week, Christ I used to get up at 5am to do that fugger, robbing old b****** newsagent, I'd go and punch him in the face if he hadn't had a heart attack and died years ago when he was out on his Honda step-though.
And the newsagent forced you to do the job and never even told you how much he was going to pay you, I expect?
 

asterix

Comrade Member
Location
Limoges or York
There is a 'simple' formula :

final amount = salary 2008( 1 + inflation rate )^years since 2008
or say
18000(1.025)^5

You need £20365.347832
 

02GF74

Über Member
There is a 'simple' formula :

final amount = salary 2008( 1 + inflation rate )^years since 2008
or say
18000(1.025)^5

not quite as it assumes inflation rate is constant, and even without knowing that actual value, i am pretty sure it is not.

it is best not to know the asnwers to this type of question as it can lead to disappointment, depression and anger.
 

asterix

Comrade Member
Location
Limoges or York
not quite as it assumes inflation rate is constant, and even without knowing that actual value, i am pretty sure it is not.

it is best not to know the asnwers to this type of question as it can lead to disappointment, depression and anger.

Agreed, it would be almost impossible for inflation to be constant, however as my income relies in part on what I can glean from savings (very little these days) I have been keeping a beady eye on the situation and 2.5% seemed a fair assumption. I'd agree too, it's nice not to have to calculate these things and I only do it because I live on a rather tight margin as the OP probably does. It is easier to ignore the arithmetic but maybe that is a high risk approach like assuming interest rates will be forever the same and house prices always go up.
 
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