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Adjusting for inflation in Excel is simpler than you might think. By using a few straightforward formulas, you can accurately account for the changing value of money over time.
This involves using the Consumer Price Index (CPI) to adjust historical financial data to present-day values.
How to Adjust for Inflation in Excel
This section will guide you through the steps to adjust for inflation using Excel.
By the end, you’ll be able to convert past dollar amounts into present values, giving you a clearer picture of economic changes over time.
Step 1: Gather CPI Data
First, find historical CPI data for the time periods you are interested in.
You can usually get this information from government websites or financial databases.
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Step 2: Enter CPI Data in Excel
Next, enter the CPI data into your Excel spreadsheet.
Make sure to label each column with the appropriate year and corresponding CPI value.
This will make it easier to reference these values in your formulas later.
Step 3: Prepare Your Data
Identify the dollar amount
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