# €1 in 2005 is worth €1.08 in 2008

## Value of €1 from 2005 to 2008

According to the European Central Bank consumer price index, prices in 2008 are 7.91% higher than average prices since 2005. The Euro experienced an average inflation rate of 2.57% per year during this period, causing the real value of a euro to decrease.

In other words, €1 in 2005 is equivalent in purchasing power to about €1.08 in 2008, a difference of €0.08 over 3 years.

The 2005 inflation rate was 2.20%. The inflation rate in 2008 was 3.34%. The 2008 inflation rate is higher compared to the average inflation rate of 1.22% per year between 2008 and 2020.

 Cumulative price change 7.91% Average inflation rate 2.57% Converted amount (€1 base) €1.08 Price difference (€1 base) €0.08 CPI in 2005 84.802 CPI in 2008 91.508 Inflation in 2005 2.20% Inflation in 2008 3.34%

EUR Inflation since 1996
Annual Rate, the European Central Bank CPI

## Buying power of €1 in 2005

This chart shows a calculation of buying power equivalence for €1 in 2005 (price index tracking began in 1996).

For example, if you started with €1, you would need to end with €1.08 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When €1 is equivalent to €1.08 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 2005 dollars, the chart below shows how €1 is worth less over 3 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:

Euro inflation: 2005-2008
Year Euro Value Inflation Rate
2005 €1.00 2.20%
2006 €1.02 2.21%
2007 €1.04 2.17%
2008 €1.08 3.34%
2009 €1.08 0.32%
2010 €1.10 1.61%
2011 €1.13 2.72%
2012 €1.16 2.50%
2013 €1.17 1.35%
2014 €1.18 0.43%
2015 €1.18 0.03%
2016 €1.18 0.24%
2017 €1.20 1.54%
2018 €1.22 1.67%
2019 €1.23 0.78%
2020 €1.25 1.50%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

This conversion table shows various other 2005 amounts in 2008 euros, based on the 7.91% change in prices:

Conversion Table: Value of a euro in 2008
Initial value Equivalent value
€1 euro in 2005 €1.08 euros in 2008
€5 euros in 2005 €5.40 euros in 2008
€10 euros in 2005 €10.79 euros in 2008
€50 euros in 2005 €53.95 euros in 2008
€100 euros in 2005 €107.91 euros in 2008
€500 euros in 2005 €539.54 euros in 2008
€1,000 euros in 2005 €1,079.09 euros in 2008
€5,000 euros in 2005 €5,395.43 euros in 2008
€10,000 euros in 2005 €10,790.86 euros in 2008
€50,000 euros in 2005 €53,954.32 euros in 2008
€100,000 euros in 2005 €107,908.65 euros in 2008
€500,000 euros in 2005 €539,543.25 euros in 2008
€1,000,000 euros in 2005 €1,079,086.50 euros in 2008

## How to Calculate Inflation Rate for €1, 2005 to 2008

Our calculations use the following inflation rate formula to calculate the change in value between 2005 and 2008:

CPI in 2008 CPI in 2005
×
2005 EUR value
=
2008 EUR value

Then plug in historical CPI values. The Euro CPI was 84.80166667 in the year 2005 and 91.50833333 in 2008:

91.5083333384.80166667
×
€1
=
€1.08

€1 in 2005 has the same "purchasing power" or "buying power" as €1.08 in 2008.

To get the total inflation rate for the 3 years between 2005 and 2008, we use the following formula:

CPI in 2008 - CPI in 2005CPI in 2005
×
100
=
Cumulative inflation rate (3 years)

Plugging in the values to this equation, we get:

91.50833333 - 84.8016666784.80166667
×
100
=
8%

Politics and news often influence economic performance. Here's what was happening at the time:

• Egyptian President Hosni Mubarak asks Parliament to amend Article 76 and orders constitutional changes in order to allow multi-candidate presidential elections.
• Syria's 29-year-long military domination of Lebanon ends, after it withdraws the last of its 14,000 troops under international pressure.
• A coordinated bomb attack hits London's public transport system, during the morning rush hour, killing 52 and injuring a further 700 people.
• Angela Merkel becomes first female Chancellor of Germany.

## 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: “€1 in 2005 → 2008 | Euro Inflation Calculator.” Official Inflation Data, Alioth Finance, 27 Oct. 2020, https://www.officialdata.org/europe/inflation/2005?amount=1&endYear=2008.

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.