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Inflation Risk Calculator

Estimated reading time: 2 minutes

The inflation risk tool below illustrates how inflation has expressed itself in a few important categories in the Netherlands. This tool serves for educational purposes. Feel free to browse through some sample datasets to get a feel for the dynamics and context of inflation over last century:

Inflation often plays a key role in projectrisk. Please review how we estimate those financial risks in the article about project risk.

Please hold on while the inflation risk calculator is loading below.

Assumptions for the inflation risk tool

The inflation risk tool uses publicly available inflation data using data from statistical bureaus (like CBS). The first graph shows the data as provided. The second graph shows the YoY (year on year) % changes with the VaR (Value at Risk) results. The third graph shows the histogram of all YoY% changes.

We calculate the historical Value at Risk using the confidence level and look-back period as selected by the client. For the default historical time-frame we assume the period from 1993 up till now to be representative for the current European regime, however feel free to select different time-frames to assess the impact of potential regime changes. A 90% confidence percentile means that there is a 90% statistical chance that the risk would not be higher than the calculated level. This implies that there is a 10% chance that it would be higher.

Disclaimer

We have made every attempt to ensure that the information contained in the inflation risk calculator has been obtained from reliable sources. Also that the model is properly applied and that all calculations have been properly executed. We believe this is the best available proxy of the risks based on publicly available data.

Asset Mechanics is not responsible for any errors or omissions by providers of the market data, or for the results obtained from the use of this information. All information on this website is provided “as is” and for educational purposes. We do not offer guarantee of completeness, accuracy, timeliness or the results obtained from the use of this information. We do not intend the information on this website to be a source of (investment) advice or credit analysis.

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