What has average US inflation been?

US CPI inflation has averaged approximately 3.1% per year over the long run (1913–2024), though it rose sharply to 8-9% in 2022 before cooling.

How does inflation affect savings?

If your savings account earns 2% interest but inflation is 3%, your real purchasing power is shrinking by 1% per year. You need returns above inflation to grow wealth.

What is the Rule of 70?

Divide 70 by the inflation rate to estimate how many years it takes for prices to double. At 3% inflation, prices double in about 70/3 = 23 years.

Inflation Calculator — Real Value of Money Over Time

The Inflation Calculator shows how the purchasing power of money changes over time. Inflation erodes the value of money — what $100 bought in 2000 costs much more today. Use this tool to convert historical amounts to today's values, or to estimate the future value of current money at an assumed inflation rate.

Initial Amount($)

Annual Inflation Rate(%)

Number of Years(years)

Frequently Asked Questions

Inflation is the rate at which the general price level of goods and services rises, causing purchasing power to fall. If inflation is 3%, something costing $100 today will cost $103 next year.

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