This inflation calculator uses official records published by the U.S. Department of Labor. Inflation has averaged 0.90% per year since 1635, causing an overall price difference of 2986.06%.
Use the form on this page to look up inflation for any year.
What is inflation? Inflation is a measure of how prices change over time. The U.S. Bureau of Labor Statistics (BLS) selects a "basket of goods," which is a collection of many goods and services that are commonly used by consumers. Every month, the prices of these goods are measured and compared to previous prices.
Use the inflation calculator form as a starting point for answering questions that you have about the historical inflation rate in the U.S. This calculator allows you to "correct for inflation". You can also learn about inflation for the UK, Canada, Australia, and Europe.
Compared to last year's annual rate, the inflation rate in 2019 is now 1.65%1. If this number holds, $100 today would be equivalent to $101.65 next year.
|Cumulative price change||2,986.06%|
|Average inflation rate||0.90%|
|Price difference ($100 base)||$2,986.06|
|CPI in 1635||8.3|
|CPI in 2019||256.143|
Note that CPI data prior to 1913 is estimated by Dr. Robert Sahr of Oregon State University.
Inflation can vary widely by city, even within the United States. For obvious reasons we do not have inflation data going all the way back to the 1600s for these cities, but this excerpt showing inflation from 1990 to present day will give you an idea of how inflation varies by location.
Click through to see more city details or run your own inflation calculation using the form at the top of the page.
Here's how purchasing power in some major cities changed between 1990 and 2019:
San Diego, California experienced the highest average inflation rate of all the cities, 3.41%, in the 29 years between 1990 and 2019.
In other words, $100 in 1990 is equivalent to $255.60 in 2019 in San Diego!
St. Louis, Missouri experienced the lowest inflation rate of 2.04% during the 29 years between 1990 and 2019. $100 in 1990 is equivalent to $179.57 in 2019 in St. Louis.
Inflation can also vary widely by country. For comparison, in the UK £100.00 in 1990 would be equivalent to £225.41 in 2019, an absolute change of £125.41 and a cumulative change of 125.41%.
In Canada, CA$100.00 in 1990 would be equivalent to CA$166.96 in 2019, an absolute change of CA$66.96 and a cumulative change of 66.96%.
Compare these numbers to the US's overall absolute change of $95.98 and total percent change of 95.98%.
The result of the Bureau of Labor Statistics' monthly "basket of goods" measurement is a single number known as the Consumer Price Index (CPI). This the weighted average of many changes in the price of goods and services.
Inflation is quantified as a rate because it is a measure of how the CPI changes over time. When you see an inflation rate, the number is based on change in CPI between two points in time.
It's important to know which dates are being compared in order to understand the inflation rate. In most cases, inflation rates are 12-month trailing. This means, for example, that the inflation rate released in March 2019 is based on a comparison to the CPI in March 2018. If the inflation rate is annual, then it's based on the year-over-year CPI.
The concept of "purchasing power" is used to compare the value of a dollar between different years. The Consumer Price Index directly measures purchasing power by keeping track of how many dollars it takes to buy common goods and services.
For example, if an apple costs $0.50 last year and $1.00 today, we can say that "the purchasing power of an apple has decreased," because a dollar now buys you 1 apple instead of 2 (you can view actual inflation rates for apples and many other items).
Inflation is linked to purchasing power. As inflation takes place, the purchasing power of the dollar decreases. If deflation takes place, the purchasing power of the dollar increases.
This inflation calculator uses the following inflation rate formula:
Then plug in historical CPI values. The U.S. CPI was 172.2 in the year 2000 and 251.107 in 2018:
$100 in 2000 has the same "purchasing power" or "buying power" as $145.82 in 2018.
To get the total inflation rate for the 18 years between 2000 and 2018, we use the following formula:
Plugging in the values to this equation, we get:
Raw data for these calculations comes from the Bureau of Labor Statistics' Consumer Price Index (CPI), established in 1913. Inflation data from 1665 to 1912 is sourced from a historical study conducted by political science professor Robert Sahr at Oregon State University.
You may use the following MLA citation for this page: “Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 12 Jul. 2019, https://www.officialdata.org/.