Quick answer: At 3% average inflation, something that costs 1,000 today will cost 1,343.92 in 10 years, and 1,000 then buys what 744.09 buys today.
How it's calculated
With an average yearly inflation rate π over n years, prices rise by the factor (1 + π)^n. Future cost = today's price × (1 + π)^n; an amount from n years ago in today's money is the same calculation.
Buying power works the other way: money in n years is worth amount ÷ (1 + π)^n in today's prices. At 3% a year, prices double in about 23.4 years.
This calculator has no price data built in; enter the average rate yourself. Official consumer price index (CPI) figures are published by GASTAT for Saudi Arabia, the FCSC for the UAE and the Bureau of Labor Statistics for the US. For a past period, use the average yearly change between the two years' index values.
Worked examples
- 1,000 today at 3% for 10 years: 1,000 × 1.03^10 = 1,343.92
- Buying power of 1,000 in 10 years at 3%: 1,000 ÷ 1.03^10 = 744.09
Frequently asked questions
Where do I find the inflation rate?
From your national statistics office: GASTAT (Saudi Arabia), FCSC (UAE), or each GCC country's statistics authority. They publish CPI monthly with yearly changes.
How do I get the average rate between two years?
(CPI end ÷ CPI start)^(1 ÷ years) − 1. For example, an index going from 100 to 120 over 8 years is 2.31% a year.
Can inflation be negative?
Yes, that is deflation; enter a negative rate down to −20%.
Why does my own cost of living differ?
CPI tracks an average basket. If you spend more on rent, school fees or travel, your personal inflation can be higher or lower.
How long does it take prices to double?
Roughly 70 divided by the inflation rate. At 3% that is about 23 years.
How do I tell if my savings beat inflation?
Compare your return with the inflation rate. A 4% return with 3% inflation grows buying power by only about 1% a year.