# Euro inflation rate in 2021: 2.90%

## Inflation in 2021 and its effect on euro value

€1 in 2020 is equivalent in purchasing power to about €1.03 in 2021. The euro had an average inflation rate of 2.90% per year between 2020 and 2021, producing a cumulative price increase of 2.90%. Purchasing power decreased by 2.90% in 2021 compared to 2020. On average, you would have to spend 2.90% more money in 2021 than in 2020 for the same item.

This means that prices in 2021 are 1.03 times as high as average prices since 2020, according to the European Central Bank consumer price index.

The inflation rate in 2020 was 0.74%. The inflation rate in 2021 was 2.90%. The 2021 inflation rate is lower compared to the average inflation rate of 5.35% per year between 2021 and 2024.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 2021 was 109.28. It was 106.20 in the previous year, 2020. The difference in CPI between the years is used by the European Central Bank to officially determine inflation.

 Average inflation rate 2.90% Converted amount€1 base €1.03 Price difference€1 base €0.03 CPI in 2020 106.201 CPI in 2021 109.280 Inflation in 2020 0.74% Inflation in 2021 2.90% €1 in 2020 €1.03 in 2021

Recent EUR inflation
Annual Rate, the European Central Bank CPI

## How to calculate inflation rate for €1, 2020 to 2021

Our calculations use the following inflation rate formula to calculate the change in value between 2020 and 2021:

CPI in 2021 CPI in 2020
×
2020 EUR value
=
2021 EUR value

Then plug in historical CPI values. The Euro CPI was 106.2008333 in the year 2020 and 109.28 in 2021:

109.28106.2008333
×
€1
=
€1.03

€1 in 2020 has the same "purchasing power" or "buying power" as €1.03 in 2021.

To get the total inflation rate for the 1 years between 2020 and 2021, we use the following formula:

CPI in 2021 - CPI in 2020CPI in 2020
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

109.28 - 106.2008333106.2008333
×
100
=
3%

## 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 2021 | Euro Inflation Calculator.” Official Inflation Data, Alioth Finance, 6 Sep. 2024, https://www.officialdata.org/Euro-inflation-rate-in-2021.

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.