Inflation Calculator
Calculate how inflation has affected the value of money over time using official CPI data from 1913-2025. Adjust historical prices to today dollars or see what current money was worth in the past.
Enter Details
Data from 1913 to 2025
Range: 1913 - 2025
Range: 1913 - 2025
Quick Presets
Results
Inflation Impact
$100 in 1990 had the same buying power as $241 in 2024. Your money is worth 2.4x less today.
Over 34 years, prices increased by 0.0%
Original Amount
$0
Adjusted Value
$0
Total Price Change
+0.0%
Prices went up
Avg. Annual Inflation
0.00%
Compound annual rate
Time Period
34 Years
Forward in time
Major Economic Events
Dot-com Bust
Tech bubble bursts, recession
Financial Crisis
Lehman fails, QE begins
COVID-19 Pandemic
Initial deflation, then stimulus
Post-COVID Inflation
Supply chains + stimulus = inflation
Fed Rate Hikes
Aggressive tightening to fight inflation
Purchasing Power Alert: Over 34 years, the dollar lost over half its purchasing power. What cost $100 in the past now costs $241.
Value Over Time
Year-by-Year Breakdown
| Year | CPI Index | Adjusted Value | YoY Change | Cumulative | Event |
|---|---|---|---|---|---|
| 1990 | 130.7 | $0 | - | 0.0% | - |
| 1991 | 136.2 | $0 | +0.0% | +0.0% | - |
| 1992 | 140.3 | $0 | +0.0% | +0.0% | - |
| 1993 | 144.5 | $0 | +0.0% | +0.0% | - |
| 1994 | 148.2 | $0 | +0.0% | +0.0% | - |
| 1995 | 152.4 | $0 | +0.0% | +0.0% | - |
| 1996 | 156.9 | $0 | +0.0% | +0.0% | - |
| 1997 | 160.5 | $0 | +0.0% | +0.0% | - |
| 1998 | 163.0 | $0 | +0.0% | +0.0% | - |
| 1999 | 166.6 | $0 | +0.0% | +0.0% | - |
Understanding Inflation: A Complete Guide to Purchasing Power Over Time
What Is Inflation?
Inflation is the rate at which the general level of prices for goods and services rises over time, causing purchasing power to fall. When inflation occurs, each dollar you hold buys fewer goods and services than it did before. The Bureau of Labor Statistics (BLS) measures inflation using the Consumer Price Index (CPI).
Think of it this way: if a gallon of milk cost $2.00 in 2000 and costs $4.50 in 2025, that is the result of inflation. The milk has not gotten more valuable; the dollar has become less valuable.
- *Purchasing Power: The real value of money in terms of what it can buy
- *CPI: Consumer Price Index - the main measure of inflation in the United States
- *Base Period: The CPI uses 1982-84 as its base period with an index value of 100
- *Deflation: The opposite of inflation, when prices decrease (rare in modern economies)
How the Consumer Price Index Works
The Consumer Price Index (CPI) tracks the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. The BLS collects price data on about 80,000 items each month from thousands of retail establishments.
CPI Basket Categories
The CPI basket is weighted by typical consumer spending patterns:
- *Housing (42%): Rent, homeowner costs, utilities, furnishings
- *Transportation (17%): Vehicles, gas, insurance, public transit
- *Food & Beverages (14%): Groceries, restaurants, alcohol
- *Medical Care (9%): Insurance, prescriptions, services
- *Education & Communication (7%): Tuition, phones, internet
- *Recreation (5%): Entertainment, hobbies, pets
- *Apparel (3%): Clothing, footwear, accessories
- *Other (3%): Personal care, tobacco, miscellaneous
Major Inflation Events in US History
Understanding historical inflation helps contextualize current economic conditions:
World War I (1914-1920)
War spending drove prices up dramatically. Between 1914 and 1920, prices roughly doubled. The CPI rose from 10.0 in 1914 to 20.0 by 1920.
Great Depression (1929-1933)
One of the few deflationary periods in US history. Prices fell 25% as demand collapsed. The CPI dropped from 17.2 in 1929 to 12.9 in 1933.
Stagflation Era (1970-1982)
The worst peacetime inflation in US history. Oil crises, Vietnam War spending, and loose monetary policy pushed inflation above 13% at its peak. The CPI nearly tripled from 38.8 in 1970 to 96.5 in 1982.
Great Moderation (1983-2019)
Paul Volcker at the Fed raised rates to 20%, breaking the back of inflation. This ushered in decades of low, stable inflation averaging around 2-3% annually.
Post-COVID Inflation (2021-2023)
Supply chain disruptions and massive fiscal stimulus led to the highest inflation since the 1980s, peaking at 9.1% in June 2022. The CPI jumped from 258.8 in 2020 to 304.7 in 2023.
Why Inflation Matters for Your Finances
Understanding inflation is crucial for making smart financial decisions:
Cash Loses Value
- *Money in a 0% savings account loses purchasing power every year
- *$100,000 in cash today might buy only $74,000 worth of goods in 10 years at 3% inflation
- *Fixed incomes and pensions erode over time without cost-of-living adjustments
Investments Beat Inflation
- *Stocks have historically returned 7-10% annually, outpacing inflation
- *I Bonds and TIPS offer explicit inflation protection
- *Real estate often appreciates with or faster than inflation
Key Financial Planning Considerations
- *Retirement planning must account for decades of compounding inflation
- *Social Security benefits adjust for inflation via COLA (Cost of Living Adjustment)
- *Fixed-rate debt becomes cheaper in real terms as inflation rises
- *Tax brackets are indexed for inflation, preventing "bracket creep"
The Federal Reserve's Role
The Federal Reserve has a dual mandate from Congress: maximize employment and maintain stable prices. The Fed targets 2% annual inflation as its definition of "price stability" - low enough to preserve purchasing power but high enough to allow for economic adjustments.
- *Raising Rates: When inflation is too high, the Fed raises interest rates to cool the economy
- *Lowering Rates: When inflation is too low or the economy is weak, the Fed cuts rates to stimulate growth
- *Quantitative Easing: In extreme cases, the Fed buys assets to inject money into the economy
- *Forward Guidance: The Fed communicates its intentions to shape market expectations
Protecting Your Wealth Against Inflation
Here are actionable strategies to preserve your purchasing power:
- 1.Invest in Equities: Over long periods, stocks have consistently beaten inflation. A diversified portfolio of index funds is a proven approach.
- 2.Consider I Bonds: Series I Savings Bonds adjust their interest rate based on inflation. You can buy up to $10,000 per year at TreasuryDirect.gov.
- 3.Use High-Yield Savings: At minimum, keep your emergency fund in a high-yield savings account earning 4-5% rather than a traditional bank at 0.01%.
- 4.Own Real Assets: Real estate, land, and commodities often hold value during inflationary periods.
- 5.Lock in Fixed-Rate Debt: A fixed-rate mortgage becomes cheaper in real terms as inflation erodes the principal.
- 6.Increase Your Income: The best hedge against inflation is growing your earning power through skills, education, and career advancement.
Using This Calculator
This inflation calculator uses official CPI data from the Bureau of Labor Statistics to show how prices have changed over time. You can use it to:
- *Convert historical prices to today's dollars
- *Understand how much purchasing power your savings have gained or lost
- *Compare salaries across different time periods
- *See the impact of major economic events on prices
- *Plan for future expenses accounting for inflation
The data spans from 1913 (when the BLS began tracking CPI) to the present day, giving you over 110 years of inflation history to explore.