Inflation in 2004 and its effect on euro value
Purchasing power decreased by 2.18% in 2004 compared to 2003. On average, you would have to spend 2.18% more money in 2004 than in 2003 for the same item.
In other words, €1 in 2003 is equivalent in purchasing power to about €1.02 in 2004.
The 2003 inflation rate was 2.12%. The inflation rate in 2004 was 2.18%. The 2004 inflation rate is higher compared to the average inflation rate of 1.53% per year between 2004 and 2020.
Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 2004 was 82.98. It was 81.21 in the previous year, 2003. The difference in CPI between the years is used by the European Central Bank to officially determine inflation.
⌃
| Average inflation rate | 2.18% |
| Converted amount (€1 base) | €1.02 |
| Price difference (€1 base) | €0.02 |
| CPI in 2003 | 81.210 |
| CPI in 2004 | 82.978 |
| Inflation in 2003 | 2.12% |
| Inflation in 2004 | 2.18% |
How to Calculate Inflation Rate for €1, 2003 to 2004
Our calculations use the following inflation rate formula to calculate the change in value between 2003 and 2004:
CPI in 2004
CPI in 2003
×
2003 EUR value
=
2004 EUR value
Then plug in historical CPI values. The Euro CPI was 81.21 in the year 2003 and 82.97833333 in 2004:
82.9783333381.21
×
€1
=
€1.02
€1 in 2003 has the same "purchasing power" or "buying power" as €1.02 in 2004.
To get the total inflation rate for the 1 years between 2003 and 2004, we use the following formula:
CPI in 2004 - CPI in 2003CPI in 2003
×
100
=
Cumulative inflation rate (1 years)
Plugging in the values to this equation, we get:
82.97833333 - 81.2181.21
×
100
=
2%
News headlines from 2003
Politics and news often influence economic performance. Here's what was happening at the time:
- Despite a lack of support from the United Nations, a coalition lead by America and Britain invades Iraq.
- Baghdad falls, ending the invasion of Iraq.
- 10 new members are admitted to the European Union after signing the Treaty of Accession in Athens.
Data Source & Citation
Raw data for these calculations comes from the European Commission and the European Central Bank's Harmonized Index of Consumer prices (HICP), which is computed based on the reported consumer price indices in member countries of the European Union.
You may use the following MLA citation for this page: “Inflation Rate in 2004 | Euro Inflation Calculator.” Official Inflation Data, Alioth Finance, 2 Dec. 2020, https://www.officialdata.org/Euro-inflation-rate-in-2004.
Special thanks to QuickChart for their chart image API, which is used for chart downloads.
in2013dollars.com is a reference website maintained by the Official Data Foundation.
| Average inflation rate | 2.18% |
| Converted amount (€1 base) | €1.02 |
| Price difference (€1 base) | €0.02 |
| CPI in 2003 | 81.210 |
| CPI in 2004 | 82.978 |
| Inflation in 2003 | 2.12% |
| Inflation in 2004 | 2.18% |