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Financial Tools

Inflation Impact Calculator

Discover how the purchasing power of money changes over time

Calculate Inflation Impact

See what money from the past would be worth today

🔄 Reverse Calculation (What did I need in the past?)

Calculate how much money you would have needed in a past year to have the same purchasing power as a certain amount today.

⚡ Quick Examples

Value Timeline

Track how your money's value changed year by year

Multi-Era Comparison

Compare the same amount across different time periods

💼 Salary Comparison Tool

Compare salaries across different years in today's dollars.

Inflation by Category

Different goods and services inflate at different rates

Select a category to see how prices have changed differently from overall inflation.

📊
Overall CPI
~3.0%/yr
🏠
Housing
~4.2%/yr
🏥
Medical Care
~5.1%/yr
🎓
Education
~6.0%/yr
🍔
Food & Beverages
~2.8%/yr
Energy
~3.5%/yr
👕
Apparel
~0.5%/yr
💻
Electronics
-5.0%/yr

Inflation Reference

Historical CPI data and key inflation milestones

📊 Understanding This Chart

This chart shows the annual inflation rate from 1950 to 2024. Each bar represents how much prices increased (or decreased) that year compared to the previous year.

  • Green bars = Normal inflation (0-5%)
  • Red bars = High inflation (above 5%)
  • Blue bars = Deflation (prices decreased)

💡 Click on any bar to see the exact inflation rate for that year!

Annual Inflation Rate (1950-2024)
📈 Notable Inflation Periods
1970s Stagflation

Oil crises led to double-digit inflation, peaking at 14.8% in 1980.

1990s Stability

The "Great Moderation" saw inflation average around 2-3% annually.

2008 Financial Crisis

Brief deflation followed by near-zero inflation for several years.

2021-2022 Surge

Post-pandemic inflation reached 9.1% in June 2022, highest since 1981.

🎯 Key Milestones
Period $1 in Starting Year Equals Today Total Increase
📐 Inflation Formulas
Adjusted Value
V₂ = V₁ × (CPI₂ / CPI₁)
Inflation Rate
r = ((CPI₂ / CPI₁) - 1) × 100%
Annual Rate (CAGR)
r = ((CPI₂/CPI₁)^(1/n) - 1) × 100%

Understanding Inflation

What Is Inflation?

Inflation is the rate at which the general level of prices rises over time.

  • Measured by the Consumer Price Index (CPI)
  • Erodes purchasing power over time
  • Target rate is typically 2% annually
  • Affects savings, wages, and investments
Real vs Nominal Value

Nominal value is the face value; real value accounts for inflation.

  • Real value = purchasing power
  • $1 in 1950 ≠ $1 today
  • Always compare in real terms
  • Essential for financial planning
Protecting Against Inflation

Strategies to maintain purchasing power over time.

  • Invest in inflation-hedging assets
  • Consider TIPS (Treasury bonds)
  • Real estate as a hedge
  • Diversified stock portfolio

🎮 Test Your Inflation Knowledge

Challenge yourself with these fun mini-games about inflation!

🎯 Guess the Year!

Can you guess what year $100 would have been worth this much?

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🛒 Time Travel Shopping!

If you had $50, how many of this item could you buy in each era?

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⚖️ Which is Worth More?

Compare two amounts from different years!

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🏷️ Category Challenge!

Which category inflated the most?

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🧠 Inflation Trivia!

Test your knowledge of inflation history!

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