Maths help! - Working out pay rise for inflation over several years

(4 Posts)
rak5a Tue 15-Nov-16 22:45:01

I need to calculate a proposed pay rise for someone who has not had a rise for 5 years. I need to estimate what the cumulative uplift for inflation would be between 2011 and now, based on a salary of £45,000. Any math/finance whiz people out there who could help or point me to an online calculator?

Thank you!!

prh47bridge Tue 15-Nov-16 23:56:06

Depends which inflation index you want to use. The government's preferred measure is CPI. That stood at 94.5 in October 2011 and has risen to 101.2 in October 2016 so that would be a rise of 7.09%.

flopsypopsymopsy Thu 17-Nov-16 18:34:53

A salary of £45k in 2011 would be £52,043.54 in 2016.

A salary of £38,909.73 in 2011 would be £45k in 2016.

Both would be an uplift of 15.65%.

www.thisismoney.co.uk/money/bills/article-1633409/Historic-inflation-calculator-value-money-changed-1900.html

www.percentagecalculator.net/

prh47bridge Thu 17-Nov-16 19:03:44

That calculator uses RPI rather than CPI. It is also calculating from January 2011 to October 2016, so represents nearly 6 years inflation. If you calculate from October 2011 to October 2016 inflation is 11.26% using RPI.

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