$1 in 2022 is equivalent in purchasing power to about $1.01 today. The dollar had an average inflation rate of 6.45% in the last 12 months. As a result, the real value of a dollar has been decreasing recently. Purchasing power decreased by 6.45% in 2023 compared to 2022. On average, you would have to spend 6.45% more money in 2023 than in 2022 for the same item.

This means that today's prices are 1.01 times as high as average prices since 2022, according to the Bureau of Labor Statistics consumer price index. A dollar today only buys 99.010% of what it could buy back then.

The inflation rate in 2022 was 8.00%. The current inflation rate compared to last year is now 6.45%. If this number holds, $1 today will be equivalent in buying power to $1.06 next year. The current inflation rate page gives more detail on the latest inflation rates.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 2023 is 296.80. It was 292.66 in the previous year, 2022. The difference in CPI between the years is used by the Bureau of Labor Statistics to officially determine inflation.

Contents

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Average inflation rate | 6.45% |

Converted amount ($1 base) | $1.01 |

Price difference ($1 base) | $0.01 |

CPI in 2022 | 292.656 |

CPI in 2023 | 296.797 |

Inflation in 2022 | 8.00% |

Inflation in 2023 | 6.45% |

$1 in 2022 | $1.01 in 2023 |

Inflation can vary widely by city, even within the United States. Here's how some cities fared in 2022 to 2023 (figures shown are purchasing power equivalents of $1):

**Atlanta, Georgia**: 0.00% average rate, $1 → $1.00, cumulative change of 0.00%**San Francisco, California**: 0.00% average rate, $1 → $1.00, cumulative change of 0.00%**New York**: 0.00% average rate, $1 → $1.00, cumulative change of 0.00%**Houston, Texas**: 0.00% average rate, $1 → $1.00, cumulative change of 0.00%**Boston, Massachusetts**: 0.00% average rate, $1 → $1.00, cumulative change of 0.00%**Chicago, Illinois**: 0.00% average rate, $1 → $1.00, cumulative change of 0.00%**Dallas-Fort Worth, Texas**: 0.00% average rate, $1 → $1.00, cumulative change of 0.00%**Philadelphia, Pennsylvania**: 0.00% average rate, $1 → $1.00, cumulative change of 0.00%**Seattle, Washington**: 0.00% average rate, $1 → $1.00, cumulative change of 0.00%**Miami-Fort Lauderdale, Florida**: 0.00% average rate, $1 → $1.00, cumulative change of 0.00%**Detroit, Michigan**: 0.00% average rate, $1 → $1.00, cumulative change of 0.00%**Minneapolis-St Paul, Minnesota**: 0.00% average rate, $1 → $1.00, cumulative change of 0.00%**St Louis, Missouri**: 0.00% average rate, $1 → $1.00, cumulative change of 0.00%**Tampa, Florida**: 0.00% average rate, $1 → $1.00, cumulative change of 0.00%**Denver, Colorado**: 0.00% average rate, $1 → $1.00, cumulative change of 0.00%**Phoenix, Arizona**: 0.00% average rate, $1 → $1.00, cumulative change of 0.00%**San Diego, California**: 0.00% average rate, $1 → $1.00, cumulative change of 0.00%

Atlanta, Georgia experienced the highest rate of inflation during the 1 years between 2022 and 2023 (0.00%).

San Diego, California experienced the lowest rate of inflation during the 1 years between 2022 and 2023 (0.00%).

Note that some locations showing 0% inflation may have not yet reported latest data.

Inflation can also vary widely by country. For comparison, in the UK £1.00 in 2022 would be equivalent to £1.11 in 2023, an absolute change of £0.11 and a cumulative change of 10.70%.

In Canada, CA$1.00 in 2022 would be equivalent to CA$1.00 in 2023, an absolute change of CA$0.00 and a cumulative change of -0.30%.

Compare these numbers to the US's overall absolute change of $0.01 and total percent change of 1.42%.

CPI is the weighted combination of many categories of spending that are tracked by the government. Breaking down these categories helps explain the main drivers behind price changes.

Between 2022 and 2023:

- Gas prices increased from $3.41 per gallon to $3.36
- Bread prices increased from $1.56 per loaf to $1.87
- Milk prices increased from $3.70 per gallon to $4.20
- Egg prices increased from $1.93 per carton to $4.25
- Chicken prices increased from $1.62 per per 1 lb of whole chicken to $1.83
- Electricity prices increased from $0.15 per KwH to $0.17

This chart shows the average rate of inflation for select CPI categories between 2022 and 2023.

Compare these values to the overall average of 6.45% per year:

Category | Avg Inflation (%) | Total Inflation (%) | $1 in 2022 → 2023 |
---|---|---|---|

Food and beverages | 0.00 | 0.00 | 0.00 |

Housing | 0.00 | 0.00 | 0.00 |

Apparel | 0.00 | 0.00 | 0.00 |

Transportation | 0.00 | 0.00 | 0.00 |

Medical care | 0.00 | 0.00 | 0.00 |

Recreation | 0.00 | 0.00 | 0.00 |

Education and communication | 0.00 | 0.00 | 0.00 |

Other goods and services | 0.00 | 0.00 | 0.00 |

For all these visualizations, it's important to note that not all categories may have been tracked since 2022. This table and charts use the earliest available data for each category.

Our calculations use the following inflation rate formula to calculate the change in value between 2022 and today:

CPI today CPI in 2022

×

2022 USD value

=

Today's value

Then plug in historical CPI values. The U.S. CPI was 292.65583333333 in the year 2022 and 296.797 in 2023:

296.797292.65583333333

×

$1

=

$1 in 2022 has the same "purchasing power" or "buying power" as $1.01 in 2023.

To get the total inflation rate for the 1 years between 2022 and 2023, we use the following formula:

CPI in 2023 - CPI in 2022CPI in 2022

×

100

=

Plugging in the values to this equation, we get:

296.797 - 292.65583333333292.65583333333

×

100

=

There are multiple ways to measure inflation. Published rates of inflation will vary depending on methodology. The Consumer Price Index, used above, is the most common standard used globally.

Alternative measurements are sometimes used based on context and economic/political circumstances. Below are a few examples of alternative measurements.

The PCE Price Index is the U.S. Federal Reserve's preferred measure of inflation, compiled by the Bureau of Economic Analysis. It measures the change in prices of goods and services purchased by consumers.

For more information on the difference between PCE and CPI, see this analysis provided by the Bureau of Labor Statistics.

**Chained CPI** is an alternative measurement that takes into account how consumers adjust spending for similar items. In 2022, chained inflation was 7.51%.

To help put this inflation into perspective, if we had invested $1 in the S&P 500 index in 2022, our investment would be * nominally* worth approximately $0.83 in 2023. This is a return on investment of -16.60%, with an absolute return of $-0.17 on top of the original $1.

These numbers are not inflation adjusted, so they are considered *nominal*. In order to evaluate the *real* return on our investment, we must calculate the return with inflation taken into account.

The compounding effect of inflation would account for 1.40% of returns ($0.01) during this period. This means the inflation-adjusted * real* return of our $1 investment is $-0.18. You may also want to account for capital gains tax, which would take your real return down to around $0 for most people.

Original Amount | Final Amount | Change | |
---|---|---|---|

Nominal | $1 | $0.83 | -16.60% |

RealInflation Adjusted | $1 | $0.82 | -17.76% |

Information displayed above may differ slightly from other S&P 500 calculators. Minor discrepancies can occur because we use the latest CPI data for inflation, annualized inflation numbers for previous years, and we compute S&P price and dividends from January of 2022 to latest available data for 2023 using average monthly close price.

For more details on the S&P 500 between 2022 and 2023, see the stock market returns calculator.

Raw data for these calculations comes from the Bureau of Labor Statistics' Consumer Price Index (CPI), established in 1913. Inflation data from 1634 to 1912 is sourced from a historical study conducted by political science professor Robert Sahr at Oregon State University and from the American Antiquarian Society.

You may use the following MLA citation for this page: “Inflation Rate in 2023 | Inflation Calculator.” Official Inflation Data, Alioth Finance, 15 Jan. 2023, https://www.officialdata.org/inflation-rate-in-2023.

Special thanks to QuickChart for their chart image API, which is used for chart downloads.

Average inflation rate | 6.45% |

Converted amount ($1 base) | $1.01 |

Price difference ($1 base) | $0.01 |

CPI in 2022 | 292.656 |

CPI in 2023 | 296.797 |

Inflation in 2022 | 8.00% |

Inflation in 2023 | 6.45% |

$1 in 2022 | $1.01 in 2023 |