Updated on 12th February 2010

The Consumer Price Index (CPI) methodology was completely renewed in January 2002, and a new calculation system was introduced, which is the one that currently in effect.

As a result of this change in the calculation method, rental income by complete annuities has to be updated following any of the procedures proposed hereunder:

A) The easiest way is to use the calculation program made available by us: Do you wish to update a rental income?, as you only need to enter the initial and final periods for which you need to update your income.

B) If you also wish to, you can do the calculations yourself. In order to do so, you can use the variation rates published by INE. If instead of using the variation rates, you wish to perform the calculations using the indices, you should follow the recommendations set forth below, which will vary depending on the periods among which the rental income is to be updated. In this case, it is necessary to take into account that results might differ in some decimals, due to the rounding off as, for practical purposes, INE publishes index-related data rounded-off to three decimal places, but calculates variations using a larger number of decimals.

1. Update of rental income with the CPI between two months prior to January 2002

2. Update of rental income with the CPI between a month prior to January 2002 and another subsequent one

3. Update of rental income with the CPI between two months subsequent to January 2002

1. Update of rental income with the CPI between two months prior to January 2002

For example: You wish to update income with the CPI from August 1999 and August 2001.
Income before updating = 400 euros
CPI August 1999 (see table 4): 127.312
CPI August 2001 (see table 4): 136.745
Updated income = 400 € X (136.745/127.312) = 429,64€

2. Update of rental income with the CPI between a month prior to January 2002 and another subsequent one

The ULL index (table 3) from each month is obtained by multiplying the general monthly index, in base 2006, (table 1) by the ULL coefficient (table 2) from that same month:

For example: You wish to update income with the CPI from January 2001 to January 2002.
Income before updating = 400 euros
CPI from January 2001 (see table 4): 133.413
ULL Index from January 2002 (see table 3)= 137.484
Updated income = 400 € x (137,484/133,413) = 412,21€

Note: The indexes in table 1 and the coefficients in table 2 are rounded up to three and six decimals, respectivelly. The ULL index is figured out by using said data with the largest number of decimals.

3. Update of rental income with the CPI between two months subsequent to January 2002

For example: You wish to update income with the CPI from August 2002 and August 2003.
Income before updating = 400 euros
CPI August 2002 (see table 1): 88.015
CPI August 2003 (see table 1) : 90.649
Updated incomea = 400 € x (90,649/88,015) = 411,97€