Understand Inflation with Free Calculators and Expert Guides
Inflation refers to the ongoing increase in the general prices of goods and services, which reduces the purchasing power of your money over time. It is measured on a country-by-country basis and has a direct impact on how much your income is worth.
As inflation rises, each pound (or other currency) buys fewer goods and services. This means your salary today might not stretch as far as it did a few years ago. Our inflation section provides detailed guides and a wide range of calculators to help you understand how inflation affects your earnings, savings, and expenses. You can explore current and historical inflation rates as well as the cost of common products in previous years.
Our aim is to demystify inflation and provide you with accurate tools and resources to calculate its impact on your finances and long-term planning.
If you find this information helpful, please consider rating this page or sharing it on your favourite social media platform.
The inflation guides below are listed in recommended reading order, but you can explore them individually based on your area of interest:
- Inflation Explained: Understand what inflation is and how it affects everyday costs and earnings.
- Inflation Calculator UK: Calculate the equivalent value of money in different years within the UK.
- UK Salary Inflation Calculator: Compare your current salary in 2025 to historical equivalents to understand income shifts over time.
- Core Inflation Explained: Learn how core inflation is used as a benchmark by economists and governments.
- Types of Inflation: Discover the different forms of inflation and how they influence economic conditions.
- Deflation Explained: Understand what happens when prices fall and how deflation affects the economy.
- How to Calculate Inflation: Step-by-step guide to understanding and calculating inflation rates.
- Causes of Inflation: Explore the key drivers behind inflation including demand, supply, and monetary policy.
- Consumer Price Index Explained: Dive into how the CPI works and how it reflects changes in the cost of living.
- Historic Inflation Rates: Review inflation trends with historical data and graphs from 1900 to 2025.
Explore Inflation Rates by Country
Understand how inflation has affected economies around the world. Choose a country to see its historical inflation data, charts, and comparisons to global and regional averages.
Frequently Asked Questions About Inflation
What is inflation and how does it affect me?
Inflation is the rate at which the general price level of goods and services rises, reducing purchasing power. This means that over time, your money buys less than it did before.
How is inflation measured?
Inflation is typically measured using the Consumer Price Index (CPI), which tracks the price change of a standard basket of goods and services over time.
How do I calculate inflation?
You can use our Inflation Calculator to compare the value of money over different years based on historical inflation rates.
What is salary inflation?
Salary inflation measures how much a salary must increase to maintain the same purchasing power as in a previous year. Use our Salary Inflation Calculator to see how your income compares historically.
What causes inflation?
Inflation is caused by various factors such as increased production costs, higher demand for goods and services, and expansion of the money supply. Learn more in our Causes of Inflation guide.
Which country has the highest inflation rate?
Inflation rates vary by country and year. You can explore current and historical inflation rates by country on iCalculator to see which countries have experienced the highest inflation.
How does inflation differ from deflation?
Inflation involves rising prices, while deflation involves falling prices. Both can significantly impact economic stability. Our Deflation Explained article provides more insight.