Inflation Calculator 2026

What Is Inflation?

Inflation is the rate at which prices for goods and services go up over time. When inflation rises, every dollar you have buys a little less than it did before. A gallon of milk, a tank of gas, a month of rent -- they all cost more as inflation pushes prices higher.

A small amount of inflation is normal. The Federal Reserve targets about 2% per year, which signals a healthy, growing economy. But when inflation jumps above that -- like the 9.1% spike in June 2022 -- it starts to hurt. Your paycheck stays the same, but everything costs more.

The most common way to measure inflation in the United States is the Consumer Price Index (CPI), published monthly by the Bureau of Labor Statistics. The CPI tracks the price of a "basket" of common goods and services -- food, housing, transportation, medical care, clothing, and more -- and compares it month over month and year over year.

How Much Has the Dollar Lost to Inflation?

To put it bluntly: a dollar in 2026 buys about 97% less than a dollar in 1913. That means $1 in 1913 had the same buying power as roughly $33 today.

Here are a few examples that show just how dramatically prices have changed:

• A loaf of bread cost about $0.06 in 1913. In 2026, the average is over $4.00.
• A new car averaged around $500 in 1913. Today, the average new car costs over $48,000.
• The median home price was about $3,500 in 1913. In 2026, it is over $400,000.

These are not small changes. Over long periods, even "mild" inflation of 2-3% per year compounds into massive price increases. That is why understanding inflation matters for anyone trying to save money, plan for retirement, or simply keep up with the cost of living.

What Causes Inflation?

Inflation does not have a single cause. It usually results from a combination of factors working together:

• Too much money chasing too few goods. When the government increases the money supply (through stimulus checks, low interest rates, or quantitative easing), there is more cash in the economy. If the supply of goods does not grow to match, prices go up.
• Supply chain problems. When factories shut down, shipping gets delayed, or raw materials become scarce, it creates shortages. Fewer goods available at the same demand level means higher prices. This was a major driver during 2021-2022.
• Rising wages. When workers earn more, businesses often raise prices to cover the higher labor costs. This can create a cycle where wages and prices push each other higher.
• Energy and food prices. Oil, gas, and food are inputs to nearly everything in the economy. When energy prices spike -- due to geopolitical events, supply disruptions, or policy changes -- the cost increase ripples through groceries, transportation, manufacturing, and services.
• Tariffs and trade policy. Import tariffs directly increase the cost of foreign goods. When tariffs are applied broadly, consumers pay more for imported products and domestic alternatives often raise prices to match.

US Inflation Rate History: Key Periods

Inflation in the United States has not been steady. There have been dramatic swings over the past century:

• World War I (1917-1920): Inflation exceeded 15% as wartime demand and government spending surged.
• The Great Depression (1929-1933): Prices actually fell (deflation) by about 25% as the economy collapsed.
• World War II (1942-1948): Price controls kept inflation in check during the war, but prices surged after controls were lifted.
• The Great Inflation (1965-1982): The worst peacetime inflation in US history. Inflation hit 14.8% in 1980, driven by oil shocks, government spending, and loose monetary policy.
• The Great Moderation (1983-2019): The Fed tamed inflation, which averaged about 2.5% per year for nearly four decades.
• Post-pandemic surge (2021-2023): Inflation hit 9.1% in June 2022 -- a 40-year high -- driven by pandemic stimulus, supply chain disruptions, and energy price spikes.
• 2024-2026: Inflation has moderated to the 2.5-3.3% range as the Fed maintained higher interest rates, though tariff-related pressures and persistent housing costs continue to keep it above the 2% target.

How Inflation Affects Your Money

Your savings lose value

If your savings account earns 1% interest but inflation is running at 3%, you are losing 2% of your purchasing power every year. Over a decade, that adds up significantly. A $10,000 savings balance effectively becomes worth about $8,200 in purchasing power after 10 years of 2% real loss.

Your paycheck buys less

Even if you get a raise, it might not keep up with inflation. If your salary goes up 3% but prices go up 4%, you are actually earning less in real terms than you were before the raise. This is called a decline in "real wages."

Retirement gets more expensive

If you are planning to retire in 20-30 years, inflation will significantly change how much money you need. At 3% inflation, prices roughly double every 24 years. That means if you need $50,000 per year to live comfortably today, you would need about $100,000 per year in 24 years just to maintain the same lifestyle.

Fixed-rate debt works in your favor

Here is one area where inflation actually helps. If you locked in a 3% mortgage before inflation jumped, you are now repaying that loan with dollars that are worth less than when you borrowed them. Your monthly payment stays the same, but in real terms, it costs you less each year.

Variable-rate debt gets more expensive

The flip side: when the Fed raises interest rates to fight inflation, variable-rate debt (credit cards, adjustable-rate mortgages, HELOCs) gets more expensive. Credit card interest rates have climbed above 20% in recent years as a direct result.

How to Protect Yourself from Inflation

You cannot stop inflation, but you can make sure your money keeps pace with it:

• Invest in the stock market. Over the long term, the S&P 500 has returned about 10% annually -- well above the historical inflation average of 3.3%. Even with dips, equities are one of the best long-term hedges against inflation.
• Consider Treasury Inflation-Protected Securities (TIPS). These are government bonds where the principal adjusts with inflation. Learn about TIPS from the U.S. Treasury.
• Buy I Bonds. Series I Savings Bonds earn a fixed rate plus a variable rate that adjusts with inflation every six months. They are a low-risk way to preserve purchasing power.
• Negotiate your salary. Do not accept a raise below the inflation rate. If inflation is 3% and your raise is 2%, you are taking a pay cut in real terms. Use CPI data to make your case.
• Lock in fixed-rate debt. If you are carrying variable-rate loans, consider refinancing to a fixed rate before interest rates climb further.
• Track your spending. Use a budgeting app like Balance Pro to monitor where your money goes. When prices rise across categories, you can spot it early and adjust before it becomes a problem.
• Review your budget regularly. What worked six months ago might not work now. Check your grocery spending, subscription costs, and utilities quarterly to see where inflation is hitting hardest.

How to Use This Inflation Calculator

This calculator uses official CPI data from the Bureau of Labor Statistics to show you exactly how inflation has changed the value of the US dollar between any two years from 1913 to 2026.

1. Enter a dollar amount -- for example, $100.
2. Pick a starting year -- the year you want to measure from.
3. Pick an ending year -- the year you want to compare to.
4. Click Calculate -- the tool instantly shows you the equivalent value, accounting for cumulative inflation between those years.

You can also toggle on the chart view to see inflation trends visually, or check the examples panel to see what your money could buy in each time period.

Try it with your own salary, savings balance, or the price of something you bought years ago. The results are often surprising.

Frequently Asked Questions

What is the current US inflation rate in 2026?

As of March 2026, the annual inflation rate is 3.3%, based on the Consumer Price Index (CPI-U) published by the Bureau of Labor Statistics. This means prices are rising at a moderate pace, above the Federal Reserve's 2% target but well below the 9.1% peak seen in June 2022.

How much has the dollar lost in value since 2000?

A dollar in 2000 has the same buying power as about $1.87 in 2026. Put another way, you would need $187 today to buy what $100 could purchase in 2000. That represents a cumulative inflation of about 87% over 26 years.

What is the difference between inflation and CPI?

Inflation is the general concept of prices going up over time. The CPI (Consumer Price Index) is the specific measurement tool used to track it. The BLS measures the CPI by tracking the prices of a representative basket of goods and services that typical consumers buy. When people say "inflation is 3%," they usually mean the CPI increased 3% over the past 12 months.

Does inflation affect everyone equally?

No. Inflation hits different people differently depending on what they spend money on and how much they earn. People who spend a larger share of their income on food, gas, and rent feel inflation more acutely because those categories tend to rise faster. Higher-income earners who own assets like stocks and real estate may actually benefit, since asset prices often rise with inflation.

How does the Federal Reserve fight inflation?

The Federal Reserve's primary tool is the federal funds rate -- the interest rate banks charge each other for overnight loans. When the Fed raises this rate, borrowing becomes more expensive across the economy. Mortgages, car loans, and credit card rates all go up, which slows spending and reduces demand. Lower demand eventually brings prices down. The Fed raised rates aggressively from 2022-2023 to combat post-pandemic inflation, bringing the rate from near zero to over 5%.

Is some inflation actually good?

Yes. A small, predictable amount of inflation (around 2% per year) is considered healthy because it encourages people to spend and invest rather than hoard cash. It also makes it easier for businesses to adjust wages and for the economy to absorb shocks. Deflation (falling prices) is actually more dangerous because it discourages spending and can lead to economic stagnation.