$100
in 1975
$556,894.98
in 2022
The inflation rate in Mexico between 1975 and today has been 556,794.98%, which translates into a total increase of $556,794.98. This means that 100 pesos in 1975 are equivalent to 556,894.98 pesos in 2022. In other words, the purchasing power of $100 in 1975 equals $556,894.98 today. The average annual inflation rate between these periods has been 20.14%.
Inflation timeline in Mexico (1975 – 2022)
The following chart depicts the equivalence of $100 due to compound inflation and CPI changes. All values are equivalent in terms of purchasing power, which means that for each year the same goods or services could be bought with the indicated amount of money.
All calculations are performed in the local currency (MXN) and using 6 decimal digits. Results show only up to 2 decimal digits to favour readability. Inflation data is provided by governments and international institutions on a monthly basis. Today’s values were extrapolated from the latest 12-month rolling average official data.
The following table contains relevant indicators:
Indicator Value Cumulative inflation
1975-2021
519,325.31% Cumulative inflation
1975-today
556,794.98% Avg. Annual inflation
1975-2021
20.44% CPI 1975 0.02 CPI 2021 129.53 CPI 2022-05
(latest official data)
138.07 CPI today 138.88
How to calculate today’s value of money after inflation?
There are several ways to calculate the time value of money. Depending on the data available, results can be obtained by using the Consumer Price Index (CPI) formula or the compound interest formula.
Using the CPI formula
When we have both the start and end years, we can use the following formula:
t
=
Value0 ×
CPIt
CPI0
ValueValue
To obtain the values equivalent in buying power between 1975 and 2021, use the corresponding CPI values:
Value2021
=
Value1975 ×
CPI2021
CPI1975
Value
=
$ 100 ×
129.53
0.02
$ 100 ×
≈
$519,425.31
To obtain the equivalent value today (present value), plug in the CPI for today, which is estimated as 138.88:
Valuetoday
=
Value1975 ×
CPItoday
CPI1975
Value
=
$ 100 ×
138.88
0.02
$ 100 ×
≈
$556,894.98
Alternative: Using the compound interest formula
Given that money changes with time as a result of an inflation rate that acts as compound interest, we can use the following formula: FV = PV × (1 + i)n, where:
- FV: Future Value
- PV: Present Value
- i: Interest rate (inflation)
- n: Number of times the interest is compounded (i.e. # of years)
In this case, the future value represents the final amount obtained after applying the inflation rate to our initial value. In other words, it indicates how much are $100 worth today. There are 46 years between 1975 and 2021 and the average inflation rate was 20.4404%. Therefore, we can resolve the formula like this:
Value2021
=
PV × (1 + i)n
=
$100 × (1 + 0.204404)46
≈
$519,425.31
Mexico inflation – Conversion table
Initial Value
Equivalent value $1
peso in 1975
→ $5,194.25
pesos in 2021
$5
pesos in 1975
→ $25,971.27
pesos in 2021
$10
pesos in 1975
→ $51,942.53
pesos in 2021
$50
pesos in 1975
→ $259,712.65
pesos in 2021
$100
pesos in 1975
→ $519,425.31
pesos in 2021
$500
pesos in 1975
→ $2,597,126.53
pesos in 2021
$1,000
pesos in 1975
→ $5,194,253.07
pesos in 2021
$5,000
pesos in 1975
→ $25,971,265.34
pesos in 2021
$10,000
pesos in 1975
→ $51,942,530.69
pesos in 2021
$50,000
pesos in 1975
→ $259,712,653.43
pesos in 2021
$100,000
pesos in 1975
→ $519,425,306.85
pesos in 2021
$500,000
pesos in 1975
→ $2,597,126,534.27
pesos in 2021
$1,000,000
pesos in 1975
→ $5,194,253,068.53
pesos in 2021
