Inflation Calculator — What Is Your Money Worth in 2026?
See how inflation erodes purchasing power over time — or work backwards to find what a future amount is worth today. UK, EU, US, India rates included.
UK & EU Inflation in 2026 — Where Things Stand
After the dramatic inflation surge of 2022 — when UK CPI peaked at 11.1% in October — things have come down considerably. The UK CPI annual rate was 2.8% in April 2026, down from 3.3% in March. Still above the Bank of England's 2% target, but a long way from the crisis levels of two years ago. For comparison, Germany's flash estimate for April was 2.9% and France's was 2.5% — so the UK is sitting roughly in line with its European neighbours right now.
The numbers sound modest compared to recent history. But even 2.8% compounding over a decade does real damage to purchasing power — which is exactly what this calculator shows.
| Country | Inflation (Apr 2026) | What £/€10,000 buys in 10 yrs |
|---|---|---|
| 🇬🇧 United Kingdom | 2.8% | ~£7,630 |
| 🇩🇪 Germany | 2.9% | ~€7,530 |
| 🇫🇷 France | 2.5% | ~€7,810 |
| 🇺🇸 United States | ~2.4% | ~$7,880 |
| 🇮🇳 India | ~4.6% | ~₹6,380 |
That's what £10,000 sitting in a zero-interest account would be worth in real terms after 10 years — in purchasing power, not in the number of pounds sitting there. The number stays at £10,000. What it can buy quietly shrinks.
Two Ways to Use This Calculator
Future Value mode: "I have £10,000 today. If inflation runs at 2.8%, what will I need in 10 years to buy the same things?" The answer is roughly £13,200 — which means any investment or savings plan that doesn't grow your money by at least that much has actually lost you purchasing power, even if the number in your account has gone up.
Real Value mode: "I'll have £50,000 in 15 years from a pension or investment. What is that actually worth in today's money?" At 2.8% inflation, £50,000 in 15 years is worth roughly £33,000 in today's purchasing power — a meaningful gap that's easy to underestimate when looking at large nominal figures far in the future.
Why Even "Low" Inflation Adds Up
2.8% feels like a small number. Over time it isn't. Using the Rule of 72 — divide 72 by the inflation rate — you get the approximate number of years for prices to double. At 2.8% inflation, prices roughly double every 26 years. At the peak 2022 rate of 11.1%, prices would have doubled in about 6 years if sustained. At 4.6% (India's current rate), doubling happens in roughly 16 years.
| Inflation Rate | Years to Double Prices (Rule of 72) | Real value of £10k after 20 yrs |
|---|---|---|
| 2% | ~36 years | £6,730 |
| 2.8% | ~26 years | £5,760 |
| 4% | ~18 years | £4,560 |
| 6% | ~12 years | £3,120 |
| 10% | ~7 years | £1,490 |
Frequently Asked Questions
What is the current UK inflation rate in 2026?
The UK CPI annual inflation rate was 2.8% in April 2026, down from 3.3% in March. This is above the Bank of England's 2% target but significantly lower than the peak of 11.1% reached in October 2022. The Bank of England projects inflation to rise somewhat further in Q3 and Q4 2026 due to higher energy and food prices.
What is the difference between CPI and RPI inflation?
CPI (Consumer Prices Index) is the UK's primary official measure of inflation, used to set the Bank of England's monetary policy target and uprate benefits. RPI (Retail Prices Index) is an older measure that includes housing costs like mortgage interest payments and tends to run higher than CPI. RPI is no longer used as an official National Statistics measure but is still used in some contracts, index-linked gilts, and certain regulated price calculations.
What is "real" vs "nominal" value?
Nominal value is the face amount in currency terms — £10,000 is £10,000 regardless of inflation. Real value adjusts for inflation to express purchasing power in today's money. An investment returning 7% nominally during 2.8% inflation has a real return of roughly 4.2%. Real values let you compare across different time periods meaningfully, since the same nominal amount has different purchasing power at different points in time.
How does inflation affect savings accounts?
If your savings account interest rate is lower than the inflation rate, your money is losing purchasing power even though the number in your account is growing. For example, a 1.5% savings rate during 2.8% CPI inflation means you're losing about 1.3% of purchasing power per year in real terms. To preserve real value, your savings or investment return needs to at least match the inflation rate — and to actually grow wealth, it needs to meaningfully exceed it.
What is the Rule of 72 for inflation?
The Rule of 72 is a quick mental maths shortcut: divide 72 by the annual inflation rate to estimate how many years it takes for prices to double (or equivalently, for purchasing power to halve). At 2.8% inflation, 72 ÷ 2.8 ≈ 26 years for prices to double. At 6%, about 12 years. It's not precise but gives a useful intuitive sense of how compounding inflation accumulates over time.
Is this calculator accurate for planning purposes?
It's a planning tool based on a constant assumed inflation rate — which is a simplification. Real inflation varies year to year and differs significantly between spending categories (food, energy, services, and housing often move at different rates). For long-term planning, it's often worth running scenarios at both a conservative and an optimistic inflation assumption rather than relying on a single rate, to understand the range of possible outcomes.