20110913 - Referential EUR based on HICP (2010e)

[Technology] (Note: A corrected edition of this article exists2)
[<Normal page] [PEREZGONZALEZ Jose D (2010). Referential EUR based on HICP. Journal of Knowledge Advancement & Integration (ISSN 1177-4576), 2011, pages 118-119.]

Referential EUR

The following table provides the inflator/deflator multiplier for calculating referential euros (rEUR, r€). It is based on the average annual HICP for the euro area, changing composition (European Central Bank, 20101).

The formula for calculating rEUR is the following:

rEUR = nominal EUR + (nominal EUR * multiplier)
Year HICP A.Avg Base 2010 multiplier
2007 107.9 111.7 0.0352
2008 114.4 111.7 -0.0236
2009 108.6 111.7 0.0285
2010 111.7 111.7 0.0000
2011* 115.1 111.7 -0.0291
2012* 118.5 111.7 -0.0574
2013* 122.1 111.7 -0.0849
2014* 125.7 111.7 -0.1115
2015* 129.1 111.7 -0.1374
*It assumes a 3% annual inflation rate. These multipliers should be substituted with multipliers based on actual inflation values as soon as these are known.
References
1. EUROPEAN CENTRAL BANK (2010). HICP, other prices and costs. Retrieved from the European Central Bank on 23 July 2011.
+++ Footnotes +++
2. This edition reported the HICP for 'industry, construction and residential properties prices' instead of the HICP proper. The 2011 edition corrects this and also includes the official HICP values for 2011.

Want to know more?

MeasuringWorth
A handy website to learn about different inflation indexes and calculate the value of money according to those indexes.
Wiki of Science - Referential currency
You will find a full explanation for the concept of referential currency (thus, for referential dollars) in this page.

Author

Jose D PEREZGONZALEZ (2011). Massey University, Turitea Campus, Private Bag 11-222, Palmerston North 4442, New Zealand. (JDPerezgonzalezJDPerezgonzalez).


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