CPI Inflation Calculator (US & EU)
Calculate purchasing power changes using historical CPI data. See how inflation impacts the value of money over time.
Cumulative Inflation: 0%
About
Inflation erodes the purchasing power of currency over time, meaning a fixed amount of money buys fewer goods and services as years pass. This tool uses the Consumer Price Index (CPI-U for USA) to compare the relative value of money between two different years. It answers the question of what a dollar from the past is worth today. Understanding these shifts is critical for salary negotiations, retirement planning, and historical price comparisons. The calculation relies on the basket of goods approach, tracking price changes in food, housing, apparel, and energy. While personal inflation varies based on individual spending habits, this standardized metric provides the baseline for economic adjustments.
Formulas
The formula for adjusting a monetary value from a base year to a target year uses the ratio of their respective Consumer Price Indices (CPI).
To calculate the cumulative percentage change, also known as the total inflation rate R:
Reference Data
| Year | CPI Index (Avg) | $100 Value (Ref 1980) | Inflation Rate |
|---|---|---|---|
| 1950 | 24.1 | $29.30 | 1.3% |
| 1970 | 38.8 | $47.10 | 5.7% |
| 1980 | 82.4 | $100.00 | 13.5% |
| 1990 | 130.7 | $158.60 | 5.4% |
| 2000 | 172.2 | $208.90 | 3.4% |
| 2010 | 218.1 | $264.60 | 1.6% |
| 2020 | 258.8 | $314.00 | 1.2% |
| 2023 | 304.7 | $369.80 | 4.1% |