Inflation Calculator
Calculate the purchasing power of money over time using US CPI data from 1980 to 2026. See how inflation erodes the value of a dollar.
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Equivalent Value
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US Inflation โ Key Milestones
2022 9.1% 40-year peak (Jun 2022)
2023 3.4% Rapid cooling
2024 2.7% Near target
2026 ~2.3% At Fed target
Frequently Asked Questions
- US inflation in 2026 is running at approximately 2.2โ2.5% year-over-year (CPI-U), down significantly from the 9.1% peak in June 2022. The Federal Reserve's target is 2%. Core CPI (excluding food and energy) is also near the 2% target. Global inflation trends have normalized following the 2021โ2023 supply-chain and energy-price surge.
- It uses the US Bureau of Labor Statistics CPI-U (Consumer Price Index for All Urban Consumers) annual averages. Formula: Adjusted Value = Original Value ร (CPI in Target Year รท CPI in Start Year). For years beyond published data, a 2.3% annual inflation estimate is applied.
- $1 in 2000 had the purchasing power of about $1.87 in 2026 โ meaning prices have nearly doubled. The cumulative inflation from 2000โ2026 is roughly 87%. The biggest driver was the 2021โ2023 inflation surge, which alone eroded about 20% of purchasing power.
- Formula: Future Value = Present Value ร (1 + inflation rate)^years. Or use CPI data: Adjusted amount = Original ร (CPI_end รท CPI_start). Example: $500 in 2010 at average 2.5% inflation over 16 years = $500 ร (1.025)^16 = ~$738.
- The Consumer Price Index (CPI) measures the average change in prices paid by urban consumers for a basket of goods: housing (33%), transportation (16%), food (15%), medical care (9%), recreation (5%), and other categories. The BLS surveys thousands of retail stores and service providers monthly to track price changes.
- If your savings account earns 4% interest but inflation is 2.5%, your real (inflation-adjusted) return is 1.5%. High-yield savings and short-term Treasuries in 2026 yield around 4.0โ4.5%, above the inflation rate. Long-term, equities historically return ~7% real after inflation (10% nominal โ 3% average inflation).
- The Rule of 72 estimates how long it takes for prices to double: Years to double = 72 รท inflation rate. At 2% inflation, prices double in 36 years. At 7% inflation (like 2022), prices would double in just ~10 years. At 2.3% (2026 average), doubling takes about 31 years.
- Headline inflation = change in total CPI including food and energy. Core inflation = CPI excluding food and energy (more volatile). The Federal Reserve focuses mainly on core PCE (Personal Consumption Expenditures) as its preferred inflation gauge. In 2026, core PCE is around 2.1โ2.4%, near the Fed's 2% target.