Inflation Calculator
What Is Inflation?
Inflation is the rate at which the general level of prices for goods and services rises over time, eroding purchasing power. When inflation is 3%, what cost $100 last year now costs $103. Over decades, this effect compounds dramatically — $100 in 1913 has the same purchasing power as over $3,000 today.
What Is the CPI?
The Consumer Price Index for All Urban Consumers (CPI-U) is published monthly by the Bureau of Labor Statistics. It measures the average change in prices paid by urban consumers for a basket of goods and services. The current base period is 1982-84 = 100, meaning if the CPI is 314, prices have roughly tripled since the early 1980s.
The CPI covers categories like food, housing, transportation, medical care, recreation, education, and apparel, weighted by typical consumer spending patterns.
Historical Inflation Highlights
The U.S. has experienced several notable inflation periods: World War I (1917-18) saw 17-18% annual inflation. The Great Depression (1930-33) brought deflation of -2% to -10%. Post-WWII (1946-48) inflation hit 14-20%. The 1970s oil crisis drove inflation to 11-14%. Most recently, 2021-2022 saw inflation spike to 7-9% following pandemic-era stimulus and supply chain disruptions.
The long-run average annual inflation rate in the U.S. since 1913 is approximately 3.1%.