U.S. Inflation Calculator
The CPI Inflation Calculator extracts the latest data from the Bureau of Labor Statistics. The All-Items CPI, used by the calculator to calculate inflation rates in the United States, is updated as soon as the Bureau of Labor Statistics (BLS) releases its monthly CPI data.
How to Use The CPI Inflation Calculator?
Simply enter a dollar amount in the “costing” field, then select the years that you would like to compare. The years must be between 1913 and 2014, and the dollar amount must be between USD 1 and USD 10,000,000. For example, if you would like to know the difference between the value of $1 in 2014 versus $1 in 1945, type 1 in the “costing” field, type 1945 in the first year field, and 2014 in the second one. Hitting “Calculate” will display the result and generate a new chart.
How Accurate is This Inflation Calculator?
As mentioned above, this inflation calculator uses the CPI (Consumer Price Index) rates from the Bureau of Labor Statistics. Rates are available from 1913 to 2014. New rates are published every month on the BLS website and are available publicly. Our calculator’s script extracts the rates for the selected dates and instantly calculates the result. The results generated by this calculator should be 100% accurate as they are powered by the government’s released CPIs. If you see any mistake, please contact us.
How are inflation rates calculated?
Monthly Consumer Price Index (CPI) data published by the Bureau of Labor Statistics is used to calculate inflation rates. The formula that our calculator uses is as follows:
What is the Consumer Price Index?
The Consumer Price Index (CPI) is one of the most oft used techniques for measuring inflation the world over. Specific countries scrutinize different sets of data, but all employ a similar method. In the US, there has been contention surrounding the CPI for many years now. Initially, it was calculated by contrasting a market basket of goods from two periods – effectively operating as a cost of goods index (COGI). Yet, under the auspices of the US Congress, the CPI eventually developed into a cost of living index (COLI). In addition, as time passed methodological changes occurred which often resulted in a lower CPI. In this article, experts weigh in and provide compelling insight into whether the Consumer Price Index is a valid metric for inflation.
What is The Link Between CPI and Inflation?
The CPI is used by government agencies, banks and different entities to measure the effectiveness of fiscal and monetary policy, and to determine when that policy needs to be adjusted. The CPI basically correlates with purchasing power. When you hear the terms ‘in today’s dollars,’ or ‘adjusted for inflation,’ the values discussed have been adjusted by using the CPI in order to reflect true purchasing power, or the amount a dollar will buy, at different times in history.
Can I Add This Calculator to My Website?
Yes, we are the only inflation calculator that you can embed on any page of your site as a widget, and it’s completely free of charge. Simply head to the widget page, and start customizing the look and feel of your calculator. Once you are satisfied with how it looks, simply click “Get the Code” to receive a unique code snippet that you can embed on your site.