Inflation Calculator
Calculate the impact of inflation on purchasing power using U.S. CPI data
Inflation Calculator with U.S. CPI Data
Calculates the equivalent value of the U.S. dollar in any month from 1913 to 2025. Calculations are based on the average Consumer Price Index (CPI) data for all urban consumers in the U.S.
đ Inflation Calculator with U.S. CPI Data
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Note: Calculations are based on the Consumer Price Index (CPI) data from the U.S. Bureau of Labor Statistics. The CPI measures changes in the cost of a basket of goods and services purchased by urban consumers.
âī¸ Forward Flat Rate Inflation Calculator
Calculates an inflation based on a certain average inflation rate after some years.
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âŽī¸ Backward Flat Rate Inflation Calculator
Calculates the equivalent purchasing power of an amount some years ago based on a certain average inflation rate.
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đ Understanding Inflation
What is Inflation?
Inflation is defined as a general increase in the prices of goods and services, and a fall in the purchasing power of money. Most developed nations try to sustain an inflation rate of around 2-3% through fiscal and monetary policy.
Consumer Price Index (CPI)
The CPI measures changes in the cost of a basket of goods and services purchased by urban consumers. It's the most widely used measure of inflation in the United States.
Impact on Purchasing Power
Inflation reduces the purchasing power of money over time. What costs $100 today will likely cost more in the future, meaning the same dollar amount will buy fewer goods and services.
How to Beat Inflation
Inflation is most impactful to people who hold large amounts of liquid cash sitting idle. It is generally best to invest your money rather than storing it somewhere that doesn't earn interest.
Investment Strategies
- Real Estate: Property values often increase with inflation
- Stocks: Companies can often raise prices to keep up with inflation
- TIPS: Treasury Inflation-Protected Securities adjust with inflation
- Commodities: Gold, silver, and other commodities can hedge against inflation
- I Bonds: Government bonds that adjust for inflation
Why Inflation Occurs
Economists identify several types of inflation:
- Demand-Pull inflation: Occurs when demand for goods exceeds supply
- Cost-Push inflation: Results from increased costs of production (like oil prices)
- Built-in inflation: Results from expectations of future inflation