Inflation Calculation Result
in is equivalent to in
The cumulative inflation rate for this period is .
Please enter valid values. Start year must be between 1913 and 2023, and end year must be between 1914 and 2024.
Inflation Calculator: Measure Purchasing Power Over Time
Our free Inflation Calculator helps you understand how the value of money changes over time due to inflation. Calculate how much you'd need today to match a past amount's purchasing power or see how much your money from the past would be worth now.
Historical U.S. Inflation Trends
Visual representation of inflation rates over the past century showing periods of high inflation and deflation.
What is Inflation and How Does It Work?
Inflation represents the gradual increase in prices and the subsequent decline in purchasing power of money over time. It's measured by the Consumer Price Index (CPI), which tracks the average price changes of consumer goods and services.
Why Use Our Inflation Calculator?
Our inflation calculator uses historical CPI data from the U.S. Bureau of Labor Statistics to provide accurate calculations of purchasing power changes between any two years from 1913 to present. This tool helps you:
- Understand how much money you would need today to maintain the same standard of living as in the past
- Compare historical prices to current values
- Plan for retirement by understanding future purchasing power
- Make informed financial decisions based on historical trends
Frequently Asked Questions About Inflation
What is the current inflation rate?
As of 2024, the inflation rate has moderated from previous highs but remains above the Federal Reserve's long-term target of 2%. For the most current inflation data.
How does inflation impact investments?
Inflation erodes the purchasing power of money, which means investments need to outpace inflation to generate real returns. Some investments like stocks, real estate, and Treasury Inflation-Protected Securities (TIPS) typically perform better during inflationary periods.
What causes inflation?
Inflation is primarily caused by either increased demand for goods and services (demand-pull inflation) or increased costs of production (cost-push inflation). Monetary policy, particularly the supply of money in the economy, also significantly influences inflation rates.
Can inflation be negative?
Yes, negative inflation is called deflation. This occurs when the overall price level decreases, increasing the purchasing power of money. While this might sound positive, sustained deflation can lead to reduced consumer spending and economic stagnation.
How can I protect my savings from inflation?
To protect your savings from inflation, consider investing in assets that tend to outpace inflation such as stocks, real estate, inflation-protected bonds, and commodities. Keeping too much money in low-interest savings accounts during high inflation can erode your purchasing power over time.
