How to calculate salary inflation

AGD · 6 Jan 2013 at 17:26

Hi,

Are there any good sites where you can put in your salary and when it started and see what it should be now taking into account inflation (either CPI or RPI)?

I just assumed there would be a site for this but I can't seem to find one.

Or failing that, just a site where you can enter a time period (from a month to another month) and it will tell you the inflation in that time period?

Thanks!

semi-pro waster · 6 Jan 2013 at 18:55

Would the GDP deflators from HMT be any good for you? Alternatively would something like the BoE inflation calculator not be enough to give you a rough idea i.e. put in what your salary is as the cost and it'll give you a figure up to 2011 with the amount it should be and the average inflation rate. There are other inflation calculators such as from Hargreaves Lansdown etc but I don't know whether any are better or worse than the others.

King Damager · 6 Jan 2013 at 19:07

You doing it for just a year, or like a five year basis?

kd

Amleto · 6 Jan 2013 at 20:35

here, http://www3.hants.gov.uk/finance/retailpricesindexandconsumerpriceindex.htm , knock yourself out

get the yearly numbers, do the elementary maths.

weringo · 6 Jan 2013 at 20:36

Salary when you started work x (Today's RPI / RPI when you started work)

Amleto · 6 Jan 2013 at 20:38

doesnt work for more than one year. In fact, just doesn't work.

weringo · 6 Jan 2013 at 20:57

Is that in response to me? I think you'll find it does work.

Say he started on £20,000 in May 2005 when RPI was 192.0, the latest RPI I can find it Nov 2012 so we'll use that for today's - 245.6.

His inflated salary in this case is 20,000 x (245.6/192.0) = £25,583

chaparral · 6 Jan 2013 at 21:04

I don't think my boss understands the word inflation.......

Amleto · 6 Jan 2013 at 21:10

weringo said:
Is that in response to me? I think you'll find it does work.

Say he started on £20,000 in May 2005 when RPI was 192.0, the latest RPI I can find it Nov 2012 so we'll use that for today's - 245.6.

His inflated salary in this case is 20,000 x (245.6/192.0) = £25,583

my mistake - was thinking in terms of year-on-year rise rather than the actual index.

AGD · 6 Jan 2013 at 22:12

The time period I want just happens to fall into a half year and all the figures you find are annual only. All the calculator sites I've found only go up to 2011 and don't do it month to month.

I can't do accurate 'elementary math' without the monthly data! I can make estimates from the annual data for each months though which is what I've done so far. It just seems amazing that there isn't a website for this already!

Semi-pro: thanks but unless I'm missing something, the GDP deflators don't give me any different info to the annual inflation figures?

Amleto said:
doesnt work for more than one year. In fact, just doesn't work.

Thanks, I'll bear that in mind.

kaiowas · 6 Jan 2013 at 22:15

Monthly figures,

RPI: http://www.wolfbane.com/rpi.htm
CPI: http://www.wolfbane.com/cpi.htm

semi-pro waster · 6 Jan 2013 at 22:21

AGD said:
Semi-pro: thanks but unless I'm missing something, the GDP deflators don't give me any different info to the annual inflation figures?

Nope, it would just give you the annual inflation figures so it won't be exact enough for your needs. I'd have to admit I thought a rough approximation would probably be enough for a salary calculation but if you want it to be exact then what Amleto or kaiowas has suggested will be needed.