Why a euro today is worth only 84% of a euro in 2007
Updated: July 14, 2020According to the European Central Bank consumer price index, today's prices in 2020 are 19.54% higher than average prices since 2007. This means that a euro today only buys 83.65% of what it could buy in 2007. The Euro experienced an average inflation rate of 1.38% per year during this period, causing the real value of a euro to decrease.
In other words, €100 in 2007 is equivalent in purchasing power to about €119.54 in 2020, a difference of €19.54 over 13 years.
The 2007 inflation rate was 2.17%. The current year-over-year inflation rate (2019 to 2020) is now 1.50%1. If this number holds, €100 today will be equivalent in buying power to €101.50 next year.
⌃
| Cumulative price change | 19.54% |
| Average inflation rate | 1.38% |
| Converted amount (€100 base) | €119.54 |
| Price difference (€100 base) | €19.54 |
| CPI in 2007 | 88.548 |
| CPI in 2020 | 105.850 |
| Inflation in 2007 | 2.17% |
| Inflation in 2020 | 1.50% |
Buying power of €100 in 2007
This chart shows a calculation of buying power equivalence for €100 in 2007 (price index tracking began in 1996).
For example, if you started with €100, you would need to end with €119.54 in order to "adjust" for inflation (sometimes refered to as "beating inflation").
When €100 is equivalent to €119.54 over time, that means that the "real value" of a single Euro euro decreases over time. In other words, a euro will pay for fewer items at the store.
This effect explains how inflation erodes the value of a euro over time. By calculating the value in 2007 dollars, the chart below shows how €100 is worth less over 13 years.
According to the European Central Bank, each of these EUR amounts below is equal in terms of what it could buy at the time:
This conversion table shows various other 2007 amounts in today's euros, based on the 19.54% change in prices:
| Initial value | Equivalent value |
|---|---|
| €1 euro in 2007 | €1.20 euros today |
| €5 euros in 2007 | €5.98 euros today |
| €10 euros in 2007 | €11.95 euros today |
| €50 euros in 2007 | €59.77 euros today |
| €100 euros in 2007 | €119.54 euros today |
| €500 euros in 2007 | €597.70 euros today |
| €1,000 euros in 2007 | €1,195.39 euros today |
| €5,000 euros in 2007 | €5,976.96 euros today |
| €10,000 euros in 2007 | €11,953.92 euros today |
| €50,000 euros in 2007 | €59,769.62 euros today |
| €100,000 euros in 2007 | €119,539.23 euros today |
| €500,000 euros in 2007 | €597,696.17 euros today |
| €1,000,000 euros in 2007 | €1,195,392.35 euros today |
How to Calculate Inflation Rate for €100 since 2007
Our calculations use the following inflation rate formula to calculate the change in value between 2007 and today:
CPI today
CPI in 2007
×
2007 EUR value
=
Today's value
Then plug in historical CPI values. The Euro CPI was 88.54833333 in the year 2007 and 105.85 in 2020:
105.8588.54833333
×
€100
=
€119.54
€100 in 2007 has the same "purchasing power" or "buying power" as €119.54 in 2020.
To get the total inflation rate for the 13 years between 2007 and 2020, we use the following formula:
CPI in 2020 - CPI in 2007CPI in 2007
×
100
=
Cumulative inflation rate (13 years)
Plugging in the values to this equation, we get:
105.85 - 88.5483333388.54833333
×
100
=
20%
News headlines from 2007
Politics and news often influence economic performance. Here's what was happening at the time:
- The British Army withdraws from Northern Ireland, marking the end of, operation Banner - the longest operation in British military history.
- The South Korean President enters North Korea, crossing the Military Demarcation Line, to the second Inter-Korean Summit with the leader of North Korea.
- Bulgaria and Romania join the European Union. Aside from Irish, languages of the two countries become official EU languages, amongst 20 others.
- Slovenia becomes the 13th Eurozone country, after adopting the Euro currency.
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: “Value of 2007 euros today | Euro Inflation Calculator.” Official Inflation Data, Alioth Finance, 9 Aug. 2020, https://www.officialdata.org/eu/inflation/2007.
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.
| Cumulative price change | 19.54% |
| Average inflation rate | 1.38% |
| Converted amount (€100 base) | €119.54 |
| Price difference (€100 base) | €19.54 |
| CPI in 2007 | 88.548 |
| CPI in 2020 | 105.850 |
| Inflation in 2007 | 2.17% |
| Inflation in 2020 | 1.50% |