What is Chained Index?
It is the official methodology of TURKSTAT (TÜİK). Each month's index is calculated based on the previous month: Index[t] = Index[t-1] × (1 + rate).
CPI / PPI Inflation Calculation
This tool is primarily for Turkey.
How to Use?
1
Enter Odds
Enter the inflation rate as a percentage for each month (e.g. 3.4).
2
calculate
The chain index is calculated in accordance with the TURKSTAT methodology.
3
Check Out the Results
Cumulative inflation, real value and monthly chart are displayed.
What is this tool for?
Why Aren't Rates Just Summed?
Inflation has a compound effect. 10% + 10% is not 20%, but 21%. Because the second 10% is applied to prices that have already increased.
What Does Real Value Mean?
It is the purchasing power of money. With 100% inflation, the real value of 100 TL drops to 50 TL - 200 TL is required to buy the same product.
What is Base Year?
It is the reference period where TURKSTAT accepts the index as 100. 2021=100 means that 2021 prices are taken as 100.
When should you use this?
Inflation and Purchasing Power Calculation
See how the value of money has changed over time due to inflation.
How to Use
Enter an amount, a starting year, and a target year. The tool replicates the official calculation logic to show the inflation-adjusted value.
Frequently Asked Questions
CPI (Consumer Price Index) measures the prices consumers pay - supermarket, rent, services, etc. PPI (Producer Price Index) measures the prices producers sell at. PPI is usually a predictor for CPI. CPI shows consumer inflation, whereas PPI shows producer inflation.
Multiply your salary at the beginning of the period by cumulative inflation. For example, with a 10,000 TL salary and 60% cumulative inflation: it should be 10,000 × 1.60 = 16,000 TL so that purchasing power is protected. This is the minimum raise amount required to maintain purchasing power.
The legal increase rate for residential rents in Turkey is the 12-month CPI average. You can calculate annual inflation by entering monthly rates with this calculator. However, the legal rate is the official announcement from TURKSTAT. Be sure to use TURKSTAT's official data for rent increases.
Because of the compound effect. Each month is applied to the increased prices of the previous month. Formula: (1+r1)×(1+r2)×...×(1+r12) - 1. 12 months of 5% = 79.6% annually, not 60%! This is the compound effect of inflation.
Just enter a negative rate. Ex: write -2 for 2% deflation. The index decreases and the real value increases. However, the rate cannot be lower than -100% because the index cannot be negative. Deflation means falling prices.
Mathematically, yes. However, TURKSTAT calculates thousands of products as a weighted basket. This tool calculates the rates you enter by the chained method - same math but with your data. Results will be consistent if you calculate using TURKSTAT's official data.
Yes, this tool is completely free. It requires no registration, contains no ads, and offers unlimited usage. All calculations occur in your browser.
Real value is the purchasing power of money. With 100% inflation, the real value of 100 TL drops to 50 TL - it takes 200 TL to buy the same product. It is calculated with the formula: Real value multiplier = 1 / (1 + cumulative inflation).